First of all, I would like to convey to you a piece of important news: Yellen, the United States, said that "China has made a thunderous effort to cover up the U.S. debt."
The problem is that there are also Japan, the United Kingdom, Canada, Switzerland, Norway, and other countries such as India and Brazil, which are also in large amounts of US debt. America's nightmare rhythm is on.
According to BWC Chinese Network on November 17**, in November, China's total holdings of US debt were $700 billion, and 7,280 tons** had been shipped back to China in batches from overseas.
You know, China previously held more than $860 billion in U.S. bonds.
In other words, in just these two months, China's total U.S. debt should reach $160 billion.
The report also said that on November 16, Beijing time, the U.S. Treasury Department released a report on capital flows, but the report only released fiscal data that was delayed for two months. In September alone, a total of nine major countries holding U.S. debt amounted to $109 billion. Please note that this is only for the month of September.
What would it look like in today's situation?I can only describe it as "conceivable".
In a time of crisis for the United States, this time it is not only China that has not been fooled into increasing its holdings of U.S. debt, as it did in 2008, but has saved the United States, which is about to be destroyed by the financial crisis triggered by the "subprime mortgage crisis".
In today's China, the "internal ghosts" have aroused a high degree of vigilance and vigilance, and it is difficult for them to continue to help the United States fool and mislead China to make wrong decisions.
How bad is the state of the U.S. economy?Let's look at the monthly statement of the US Treasury released on December 15: in November, the US already had the largest monthly budget deficit in history to $314 billion, 26% higher than the same period last year.
Please note that this is only a monthly fiscal deficit. This is enough to show how difficult the US economy is
But in fact, the United States is not short of money, it is the richest man in the world, but it spends too much, and the money spent is much higher than the income, far beyond the ability of the United States.
This is like a family with an annual income of 10 million, but it has to spend 15 million. What to do if you don't have enough money?That is to use his rich status and credibility to win the trust of others and lend him money to spend, so that he can get a higher interest rate than bank deposits. This is the essence of U.S. debt.
But over the decades, the family has borrowed too much money, and no amount of money earned is enough to spend, and they can't afford to pay off their debts. In order to pay off the principal and interest of the debt due, the United States can only borrow more money, use new debt to pay off old debt, and tear down the east wall to make up for the west wall.
As a result, the United States lifted the debt ceiling, essentially allowing the United States to issue Treasury bonds at will.
However, the premise for the United States to resolve the debt crisis by issuing additional treasury bonds is that the newly issued treasury bonds must be sold.
Now the problem is that the United States can't sell it!Not only is no one buying, but they are all selling off old U.S. bonds.
Many countries, including Japan and the United Kingdom, the two most iron-clad followers of the United States, have seen the huge crisis and trap of the US Treasury bonds, and have also followed China in selling US bonds.
This is the origin of the fiscal deficit crisis and debt crisis in the United States.
The United States, which has no choice, can only continue to issue U.S. bonds head-on, and see which one will be deceived. On December 18, the US Treasury Department decided to issue a total of $89 billion in US bonds. As a result, a new round of U.S. bond trading has been triggered, expressing a high degree of panic about U.S. bonds.
In fact, as early as December 3, Yellen had a similar warning, saying that under the current high level of interest rates, the national debt may go bankrupt.
To this end, Yellen reiterated on December 15 that she will visit Beijing again to discuss areas of concern, including debt, cooperation.
However, is it possible for China to increase its holdings of U.S. bonds?If Yellen's visit to China is useful, China will increase its holdings of U.S. debt after her last visit. But the result is that China no longer continues to be a snake farmer, but instead pours ice water on frozen poisonous snakes and sells a large number of US bonds.
This time, China has repaid the rules with others, and has also played a "domino effect" of selling US bonds. Even the four allies of the United States, the United Kingdom, Canada, Japan and South Korea, have followed China's US debt.
Now, people are wondering a question: why did the United States rise so rapidly during this time?In fact, this is actually a panic among U.S. investors and foreign investors, transferring the funds from the sale of U.S. bonds to **, and the Federal Reserve secretly manipulated to create a false positive effect on the U.S. economy, the purpose is to fool everyone into increasing their holdings of U.S. bonds.
At present, Biden has no effective solution to the debt crisis and fiscal deficit. Perhaps, as I have said many times, the future of the United States will eventually fall into the hands of Biden, and Biden, who is buried in the loess to his neck, will take away the hegemony of the United States together.
The curtain has begun on the collapse of the United States, let's watch the big drama!