Since the Federal Reserve has been raising interest rates, the U.S. economy has begun to show signs of inflation, which has also become one of the biggest headaches for the United States. In addition, China's long-term and massive sell-off of U.S. bonds has triggered a global trend, threatening the dollar's dominance in international markets. According to the U.S. financial report, China's total sales of U.S. bonds for 14 consecutive months reached $541.9 billion, and only $778.1 billion of holdings are left, a record low. At the same time, China has also increased its holdings of reserves, which has been interpreted by some as "selling US bonds for exchange" to increase its own economic reserves. Not only that, but U.S. allies, such as Japan, the United Kingdom, South Korea, and other countries, have chosen to sell U.S. bonds. Currently, Japan still has 1$1 trillion in U.S. debt, ranking first in the U.S. debt;The United Kingdom has $668.9 billion in U.S. debt, ranking third among the creditors. 121 countries acted collectively, selling US bonds and increasing their holdings** as the main investment direction.
The roots of the U.S. debt crisis can be traced back to the Federal Reserve's decision to keep raising interest rates. Due to the improper grasp of economic timing and policy guidance, the US economy has begun to show signs of inflation. The US** and the market had hoped to raise interest rates to control inflationary pressures, but it turned out to be the opposite. Inflation has exacerbated the instability of the US market and caused many problems, especially on US debt. In addition, China, as a major holder of U.S. bonds, has sold U.S. bonds for a huge amount for many months, causing other countries around the world to follow suit. China is not only selling U.S. bonds, but also looking at the development of the market and strengthening its domestic economic reserves by increasing its reserves. China's move has influenced other countries, such as Japan, the United Kingdom, South Korea and other countries to sell US bonds. This global action has seen 121 countries take action at the same time, selling US bonds and increasing their holdings** in response to the impact of the US debt crisis.
In the face of the serious situation of the US debt crisis, the United States actively seeks help from other countries, hoping to get assistance, and at the same time, hopes that China will take the lead in stopping the sale of US bonds. However, China's economic rise and distrust of the United States have made a sell-off of US debt inevitable. After the 2008 financial crisis, China has become wary of investing in U.S. bonds. Moreover, China believes that the US dollar's monopoly on global economic transactions is harmful, so at the BRICS meeting, China put forward a proposal to establish a new currency with integrity and fairness to promote the development of the global economy and achieve the goal of common prosperity. U.S. Treasury Secretary Janet Yellen said she couldn't stop it.
In the face of the increasingly severe debt crisis in the United States, the United States has actively sought assistance from other countries, hoping to get a helping hand from the international community at this difficult time. U.S. Treasury Secretary Janet Yellen has insisted that the U.S. economy is only temporarily struggling, and believes that the crisis will be resolved quickly as long as other countries provide support. However, China, the world's second-largest creditor, has a new attitude toward U.S. debt that leaves the U.S. at a loss for focus. China has sold US Treasuries for 14 consecutive months, bringing the total to $541.9 billion, leaving only $778.1 billion in holdings, a record low for US debt. At the same time, China has massively increased its holdings of reserves to reduce its dependence on U.S. debt and boost its own economic reserves. This move was interpreted as "throwing away US debt in exchange", indicating that China is seeking its own development and stability while resisting the threat of US debt. At the same time, China has actively advocated the recommendations of the BRICS meeting to promote the development of the global economy and achieve the goal of common prosperity through the establishment of a new currency with integrity and fairness. This may seem simple, but it is actually significant, and it means that China is willing to work with other countries to create a more equitable, healthy, and sustainable global economic order.
With China's move to sell US bonds, Sino-US relations have also been affected to varying degrees. The United States turned to China for help during the financial crisis, but instead of receiving the expected gratitude, it sent a proven technology product to the Chinese market to enrich its own interests. This series of actions has led China to believe that the United States is no longer a trustworthy partner. Subsequently, the United States began to impose sanctions and crackdowns on Chinese companies in an attempt to stop China's growth and maintain its global leadership. However, these moves have deepened China's distrust of the United States and are one of the reasons for China's sell-off of US bonds.
The U.S. debt crisis has not only had a serious impact on the global economy, but has also had a major impact on Sino-US relations. The United States sought assistance from China during the financial crisis, and when China provided help, the United States did not give due gratitude, but instead sank a core achievement of "Wright Weijian" that had been verified by Harvard, Tokyo and other universities into the Chinese market to seek its own economic interests. The move nearly eroded China's trust in the United States, leading to a sell-off of U.S. bonds to the United States. In addition, the United States has also imposed a series of sanctions and crackdowns on Chinese companies in an attempt to stop China's development and maintain its dominant position in the world. However, these actions have deepened China's distrust of the United States and are one of the reasons for China's sell-off of US bonds.
The global sell-off of U.S. bonds has put enormous economic pressure on the United States. The United States is currently under $33 trillion in debt pressure, and the financial deficit has reached the ceiling. As a result, the United States is constantly seeking help from other countries to ease its debt pressure. However, U.S. Treasury Secretary Janet Yellen rejected the plan to "prioritize partial debt repayment," arguing that it would give China priority in repayment, which is not in line with the conventions set by the United States. The United States began to focus on providing livelihood security for the unemployed at home. When Japan demanded $280 billion in U.S. debt, U.S. Treasury Secretary Janet Yellen refused, arguing that the U.S. was in a difficult situation and that Japan, as an ally, should be the last to be paid. This move has made the outside world see that the United States, the world's largest economy country, has become a "lazy old lazy" who does not repay the money.
The global sell-off of U.S. bonds has put enormous economic pressure on the United States. At present, the US fiscal debt has reached $33 trillion, and the fiscal deficit has reached the ceiling. As a result, the United States is constantly seeking help from other countries to ease its debt pressure. However, U.S. Treasury Secretary Janet Yellen rejected some countries' proposals, arguing that they were inconsistent with the usual U.S. approach to debt servicing. She noted that the United States will prioritize the issue of living security for the unemployed at home and will focus on solving domestic economic problems. When Japan demanded $280 billion in debt from the United States, the United States** also refused. She believes that in the current predicament, it is necessary for the United States to solve its own problems first, and Japan, as an ally, can wait. This move has opened the world's eyes to the plight of the United States and deepened its distrust of the United States.
In short, the root cause of the U.S. debt crisis is inflation caused by the Federal Reserve's continuous interest rate hikes, as well as the sell-off of U.S. bonds by countries such as China. China's sell-off has been affected by the distrust of the United States and the damage to its economic interests. The global sell-off in U.S. bonds has put enormous pressure on the U.S. economy and has also had a negative impact on U.S.-China relations. At present, the United States is actively seeking help from other countries to alleviate its debt problem, but faces rejection and distrust of the United States from other countries. The U.S. debt crisis has had a huge impact on the international economic landscape and posed challenges to the readjustment of the global economic order.