The entire U.S. has been misled by the Treasury Department's data on U.S. bond holdings.
Many ** inferred from the previously disclosed data that China will change its ** degree and start ** US debt, which is undoubtedly great news for the United States.
But in fact, in the latest data, everyone finally saw the truth, China once again sold 22.2 billion US bonds.
Apparently Yellen made a trip.
Why is it said that it was misled by the US Treasury Department?
In May, the U.S. Treasury released data showing that China suddenly increased its holdings of U.S. Treasuries by $20.4 billion.
Many see this as evidence of a change in China's attitude.
Subsequently, in the data released in June, although China's holdings of U.S. bonds decreased by 400 million, after all, the amount is too small, and the United States** still firmly believes that China will continue to increase its holdings of U.S. bonds.
But everyone was deceived, and when they saw the data just released by the U.S. Treasury Department in mid-July, they were surprised to find that China had spent a large amount of $22.2 billion this time, and the current position was reduced to 846.7 billion, which is also the lowest position in the past 13 years.
Not long ago, a succession of high-level visits from the United States seemed to have failed to make any progress on US debt.
Prior to this, the United States had sent many friendly signals to China in order for China to agree to its application to visit China.
However, this is also the nature of the United States, which has always shown good intentions on the surface when it wants to obtain various benefits.
Yellen came to China with Biden's request. She said that the United States needs to establish friendly and stable relations with China, and the communication between the two countries needs to be deepened.
However, the United States changed its attitude in the blink of an eye.
The U.S. side believes that the competition between China and American companies is in an unfair state, and that China subsidizes state-owned enterprises too much. Moreover, our export controls have had a great impact on the development of the ** chain in the United States.
In fact, compared with the double-faced and three-faced position of the United States, our position has always been firm, and we have never hesitated or changed our attitude towards the continued sell-off of US bonds.
It can only be said that the United States is self-inflicted and misunderstood.
Now it seems that the United States needs to take on the problem of US debt on its own.
In this latest data, not only China is selling, but even Japan is selling US bonds aggressively, completely changing the rhythm of the previous three months of US bonds.
In addition, the United Kingdom, as a major ally of the United States, is also selling US bonds continuously, and the selling volume this month has also reached $14.1 billion.
In May this year, the United States was hit by a debt default crisis, so the United States proposed to raise the debt ceiling, which is the 100th time that the United States has raised the debt ceiling.
However, the increase in the debt ceiling has not completely solved the debt problem, but has only increased the convenience of the United States to borrow.
So the best solution is to cut spending and increase revenues at the same time, which requires an increase in taxes.
However, when the Democrats proposed to cut federal spending, the Republicans refused to raise taxes to increase revenues. This leads to a contradiction.
On the other hand, the Fed's attitude is even more foggy.
At present, the Fed's two moves have created great resistance to the issuance of US Treasury bonds.
The first is the Fed's continued sell-off of U.S. bonds, which has now become the largest sell-off of U.S. bonds among the world's central banks. And Powell also admitted that the Fed will need to reduce its assets by $1,000 billion a year in the future.
The second is the Fed's continued interest rate hikes, which have caused higher and higher interest payments on U.S. Treasury bonds and increased pressure on the Treasury.
This is very puzzling, is it so difficult for the top level of the United States to form a joint force in the face of a crisis?
It seems that it is right for China to continue to sell US bonds.