GloballyEconomypattern,U.S. TreasuriesThe sheer size of the country has alarmed central banks and investors. China, as the second largest overseas creditor of the United States, is continuously **U.S. TreasuriesIt has aroused widespread concern. Recently, some U.S. lawmakers have even proposed confiscating China's holdingsU.S. TreasuriesThis move has caused concern and speculation from the outside world. This article will delve into this issue and analyze the American "borrowing."New alsoThe risks of the "old" financial game.
In recent years,U.S. TreasuriesThe scale continues to increase, and now it is close to 34 trillion US dollars, accounting for 133% of US GDP. AmericanDebtThe growth momentum is unstoppable, every yearInterest expenseGetting higher and higher. According to the data, in fiscal year 2023U.S. TreasuriesInterest expenseIt is expected to reach $659 billion, while fiscal revenues are only $44 trillion dollars,Fiscal deficitsRise sharply. In addition, the United States has 8 trillion dollarsU.S. Treasurieswill expire in 1 year, which makesThe U.S. debt crisisCloser.
China, the second largest overseas creditor of the United States, has continued to do so over the past few monthsU.S. Treasuries, which has sold nearly $100 billionU.S. Treasuries。China on a large scale**U.S. TreasuriesOne of the reasons is to improveForeign exchange reservesstructure, loweredU.S. TreasuriesThe proportion of the reserves. At the same time, China has also increased its holdings significantlyReservesto make itReservesThe volume reached 2226 tons. **As a safe-haven asset, it is favored by central banks, and China's increase in holdings has further optimized the structure of external reserves.
Recently, a US congressman proposed to freeze and confiscate China's holdingsU.S. TreasuriesThe move has sparked widespread speculation and concern. Although the proposal has not yet been implemented, concerns have been raised. Compared toUS-Russiabetween China and the United StatesEconomyThe connection is more complicated, China is an important export market for the United States, and China holds itU.S. TreasuriesAlso to the United StatesEconomyimportant support. The practical interests of the United States cannot be ignored.
The United States has long taken the "borrowing."New alsoThe old "financial means to copeDebtproblem, but there are huge risks associated with this model. withDebtThe scale is constantly expanding andInterest expenseof the increase,Fiscal deficitsExpanding, how will the United States repay the huge amount in the futureDebtis an important question. Once the United StatesThe chain of funds is broken, which will have serious consequences, and may even default or seek non-repaymentDebtpathways. In this scenario, whether the United States will freeze or confiscate China's holdingsU.S. TreasuriesBe the center of attention for many.
At present, China continues**U.S. Treasuries, and AmericanDebtscale andFiscal deficitscontinues to expand, triggering a global pairU.S. Treasuriesand the United StatesEconomyof concerns. Although some parliamentarians proposed to freeze and confiscate the holdings held by ChinaU.S. Treasuries, but it has not been implemented at this stage. between China and the United StatesEconomyLinks are complex, held by ChinaU.S. Treasuriesto the United StatesEconomyThere is a certain supporting role, so the United States has more practical interests to consider. However, the United States "borrowed."New alsoThe "old" financial game is a huge risk, plusDebtscale andInterest expenseIncreasing, how the United States will repay in the futureDebtBe in the global spotlight. To sum up, between China and the United StatesDebtThe issue remains uncertain and predictable, and we need to keep a close eye on the worldEconomydevelopment of the situation and be prepared for risks.