China sold $778.1 billion for three consecutive monthsU.S. Treasuries, which is the highest record in history. However, it is interesting that these sell-offsU.S. TreasuriesIt was not bought by other countries or institutions, but was taken over by the army of ordinary people in the United States. According to the US Treasury Department, 70% of themU.S. TreasuriesBought by ordinary families, individuals, businesses, **, etc. in the United States. This makes ordinary people in the United States the biggest "pick-up man".
Why are ordinary people in the United States willing to buy these massively sold by China?U.S. TreasuriesThis? This is mainly because:U.S. TreasuriesRelatively stable and secure. Due to the depreciation of the dollar、U.S. Treasuriesof additional issuanceInterest ratesMany Americans have to be forced or voluntarily to buy large quantitiesU.S. Treasuries, inEconomyon the assumption of a lot of pressure. GloballyEconomyIn an unstable environmentU.S. TreasuriesSeen as a less risky safe-haven asset, relative to othersInvestmentsVarieties such as **, real estate, etc. are more stable. As a result, the average person in the United States tends to buyU.S. Treasuriesto preserve value and hedge against risk.
United States**IncreasingFiscal expenditureswithCurrencyissued, causedU.S. TreasuriesThe size is constantly expanding, and the dollar'sPurchasing powerConstantly declining. It isUnited States**Fall into oneDebtA vicious circle, unable to extricate yourself.
First of all,United States**In order to fight the new crown epidemic andRecessionHad to increaseFiscal expenditures。However, these expenditures exceededUnited States**of fiscal revenues, resulting inFiscal deficitsof the appearance. In order to fillFiscal deficitsUnited States**Only by issuanceU.S. TreasuriesBorrowing money at home and abroad.
Secondly, in order to reduce the cost of borrowing money,United States**Had to be loweredInterest ratesto attract more buyers to buyU.S. Treasuries。However, lowerInterest ratesIt will lead to the depreciation of the dollar. And the depreciation of the dollar will lead to the United StatesImported goodsThus triggering inflation.
this seriesDebtThe problem for the United StatesEconomyand society have had a profound impact. On the one hand,United States**of the continuationDebtEnlargement and the depreciation of the dollar threaten the United StatesEconomyStable. On the other hand,DebtThe problem has also exacerbated the gap between the rich and the poor and social injustice in American society, further exacerbating popular discontent and social tensions.
China's massive sell-offU.S. TreasuriesYesU.S. TreasuriesThe warning of risk is also correctUnited States**A warning of fiscal profligacy.
First of all, China**U.S. TreasuriesIt's out of rightU.S. TreasuriesConsideration of Risk. China seesU.S. TreasuriesYields fall, the dollar depreciates andUnited States**the possibility of default, these risks will result in China holdingU.S. TreasuriesShrinking value. Therefore, China chose to sell at the right timeU.S. Treasuriesto reduce losses, and for othersInvestmentsMake space.
Secondly, China**U.S. TreasuriesThat's right, tooUnited States**A warning of fiscal profligacy. China will not unconditionally support the United StatesFiscal expendituresand will not ignore the hostile behavior of the United States against China. Passed**U.S. Treasuries, China towardsUnited States**It sent a clear signal that China would not let the United States pass throughFiscal expenditureswithCurrencyIssuance splurgesInternationalCredit.
For China, the sell-offU.S. TreasuriesThere are both risks and opportunities. **U.S. Treasuriescan be reduced with the United StatesEconomythe relevance of ChinaEconomyagainst the US dollar andU.S. Treasuriesdependency. This will help with asset diversification and risk prevention in China. In addition, sell-offsU.S. TreasuriesThere are also more for ChinaForeign exchange reserveswithSurplus, for ChinaInternationalHave a greater voice and influence in the transaction.
China on a large scale**U.S. TreasuriesThe move was capturedUnited States**DebtThe crisis of skyrocketing and depreciating the dollar shows both China'sEconomyChina's strength and diplomatic wisdom also reflect China's responsibility and responsibility. However, it remains a sad reality that ordinary Americans have become the biggest "pick-ups", highlighting the gap between rich and poor and social injustice in the United States, as well as an important reflection on democracy and freedom.
As a response to this problem,United States**We need to recognize the situation, change policies, and work with China and other countries to preserve global securityFinanceOrder andEconomystability for the benefit of all mankind. In this regard, I think the following points are worth noting:
United States**Measures should be taken to control it as soon as possibleDebtGrowth, reduced through fiscal adjustment and structural reformsFiscal deficits。This can restore the market to the United StatesEconomyconfidence in the stability of the dollarPurchasing powerand reduce the scale of China and other countriesDebtDepend.
United States**should be strengthenedEconomyStructural adjustment, lower pairsDebtdependence and pay more attentionThe real economyto increase domestic productivity. This reduces the demand for foreign imports and reduces the risk of inflation.
3.The United States, China and other countries should strengthen cooperation, close communication, and jointly respond to the worldEconomyThe Challenge. Through multilateral cooperation, we will build a more stable and sustainable worldFinancesystem, for the worldEconomyGrowth is supported and guaranteed.
United States**The regulatory mechanism should be strengthened and regulatedFinancemarket behavior to avoid excessive easingFinancial regulationcausedFinancial risk
5.For the general population, it should be strengthenedFinanceeducate and raise risk awareness andInvestmentscompetence, to be treated in a more rational and cautious wayInvestmentsand financial management.
Most importantly, all countries and people should work together to build an open, inclusive, cooperative and win-win worldworld economyto achieve sustainable development and shared prosperity.