Recently, the economic development of the United States has encountered a series of serious problems. As a result of the Federal Reserve's interest rate hikes, the economy has become inflationary, triggering a wave of "de-dollarization". In particular, China has sold US bonds for 14 consecutive months, reaching $541.9 billion, leaving $778.1 billion, which is the lowest figure for China's holdings of US bonds. At the same time, China has also increased its holdings of ** reserves to increase its own economic reserves. At the same time, America's allies have also begun to sell US bonds, with Japan, the United Kingdom, South Korea and other countries choosing to sell. Japan has 1 leftWith $1 trillion, it is the largest creditor of US debt, and the United Kingdom is the third largest creditor, holding $668.9 billion. So far, a total of 121 countries around the world have collectively taken action to sell US bonds and choose to increase their holdings** as the main investment direction.
Expansion: In the U.S. debt crisis, China's move was very sensible. The dollar's long-standing dominance in the global economic system has allowed the United States to manipulate monetary policy to achieve its own interests. This has not only made it impossible for other countries to get rid of their dependence on the dollar, but also brought about a series of economic problems. China's large-scale sell-off of US bonds can be said to be a response to US hegemonism. At the same time, China's increase in ** reserves is also to diversify the risk of foreign exchange reserves and enhance the economy's ability to resist risks.
In the face of the sell-off in many countries around the world, the United States has sought China's help, hoping that China will take over the U.S. bonds issued in the next quarter and stop selling U.S. bonds. However, China had previously lent a helping hand in the 2008 U.S. debt crisis, only to be thanked by the U.S., but instead suffered economic oppression and unfair treatment by the U.S. This has evaporated China's trust in the United States and its indifference to American requests for assistance.
Expansion: China's refusal was the right decision. Over the past few years, the U.S. has been cracking down on the development of Chinese companies, imposing sanctions and repression, which has broken down the relationship of trust between China and the United States. Moreover, taking over the issuance of US bonds means that China will pay for the economic problems of the United States, which is undoubtedly a harm to China's economic interests. In the current situation, China should pay more attention to protecting its own economic security, rather than being forced to take on the debt risks of other countries.
Despite the economic difficulties, U.S. Treasury Secretary Janet Yellen rejected Japan's demand for $280 billion in U.S. debt. She believes that when the United States is in economic difficulties, it should give priority to solving the problem of living security for the unemployed in the country. This move has made the outside world think that the United States, the world's largest economy and the world's most powerful country, has become a "lazy old man" who does not pay back.
Expansion: The refusal of the US Treasury Secretary to prioritize debt payments for the sake of the US will only lead to a more negative image of the United States. As the dominant player in the global economic system, the United States should handle the debt problem more responsibly, instead of blindly shirking its responsibilities and affecting the stability of the global financial order.
The ongoing global financial turmoil and the sell-off of US bonds in many countries have once again triggered calls for a new monetary system. At the BRICS meeting, China proposed to abandon hegemonism and establish a new currency with integrity and fairness, so as to promote stable global economic growth and achieve the goal of common prosperity. However, US Treasury Secretary Janet Yellen said that she could not stop this trend.
Expansion: The establishment of a new monetary system is of great significance for the development of the global economy. Removing the dollar's monopoly in the global economy can promote fair cooperation between countries and avoid the instability that a single currency brings to the global economic system. As the world's second largest economy, China should actively participate in global monetary reform, exert its influence and role, and promote the diversified development of the financial system.
The worsening of the U.S. debt crisis and the collective sell-off of U.S. bonds by many countries around the world have continued to turbulent global financial conditions. China's sell-off of U.S. bonds and increase its holdings** are seen as a response to U.S. hegemony and a move to protect its own economic security. The United States, however, has been indifferent to China's moves. Under the current circumstances, China should stick to its own interests and guard against external risks, while also actively participating in global monetary reform and promoting the diversification of its financial system. The call for a new monetary system is a reflection and improvement of the current financial order, which deserves the joint efforts of all countries. As far as China is concerned, it is not only necessary to intensify the regulation and reform of the domestic economy, but also to actively participate in international economic affairs and make positive contributions to the stability and sustainable development of the global economy.