The economic problems in the United States stem from the Federal Reserve's interest rate hike policy, which has led to an exacerbation of inflation problems. At the same time, China's continued sell-off of U.S. bonds has triggered massive sellings of U.S. bonds in many countries around the world, which in turn poses a serious threat to the dominance of the dollar. According to the U.S. financial report, China sold U.S. bonds for 14 consecutive months, reaching $541.9 billion, leaving $778.1 billion, and the amount of U.S. debt held by China hit a record low. In addition to China, Japan, the United Kingdom, South Korea and other countries have also chosen to sell US bonds, of which Japan has only 1With $1 trillion, it is the largest creditor of the United States, and the United Kingdom also holds $668.9 billion in US debt, ranking third. A total of 121 countries around the world took action to collectively sell US bonds and choose to increase their holdings**, forming a wave of "de-dollarization". Faced with this situation, the United States has repeatedly sought China's help, hoping that China will take over the issuance of U.S. bonds in the next quarter and stop selling U.S. bonds.
Expanded: The background and causes of the U.S. debt crisis are complex and severe. First, the Fed's interest rate hike policy has plunged the US economy into inflationary woes. Economists generally agree that the improper implementation of the interest rate hike policy has led to a slowdown in economic growth and a negative inflationary effect. Faced with the reality of policy failure, US Treasury Secretary Janet Yellen has been trying to downplay the problem, insisting that the US economy is only experiencing temporary problems, and that it only needs a helping hand from other countries to resolve the crisis quickly. However, real data shows that China has sold a staggering $541.9 billion in US bonds over the past 14 months, and the amount of US debt held by China has also hit a record low of only $778.1 billion. China not only sold U.S. bonds, but also increased its holdings of reserves on a large scale, and this investment strategy of "selling U.S. bonds for **" has attracted widespread attention. In addition to China, Japan, the United Kingdom, South Korea and other countries have also joined the ranks of selling US bonds, causing a total of 121 countries around the world to take collective action and seriously shake the position of the dollar. Faced with the current situation, the United States has to ask China for assistance many times, hoping that China will take over the issuance of US bonds in the next quarter and unite other countries to stop selling US bonds to alleviate the current predicament.
The concerted action of 121 countries around the world to sell US bonds and increase their holdings of ** reserves will have a major impact on the dominance of the US dollar. In the international market, China ranks second with $778.1 billion in U.S. bond holdings, behind Japan, while the United Kingdom ranks third with $668.9 billion in U.S. debt holdings. This kind of action is in full swing, and many countries around the world have begun to readjust their investment strategies to get rid of the shackles of the dollar. At the same time, countries such as China are also increasing their holdings in large quantities to stabilize their economic reserves. For the United States, such a situation is undoubtedly devastating, and US Treasury Secretary Janet Yellen has tried several times to stop this trend, but to no avail. With $33 trillion in debt, the U.S. has overwhelmed its books and its fiscal deficit has reached its ceiling, prompting Yellen to reject the "partial debt repayment priority" plan, arguing that it would give China priority in compensation, contrary to American practice, and better yet, to solve the problem of domestic unemployment first. This answer attracted a demand for Japan's $280 billion debt, but US Treasury Secretary Janet Yellen flatly refused, believing that Japan, as an ally, should be the last to receive compensation.
Expansion: The scale of the collective action of 121 countries around the world to sell US bonds and increase their holdings** is staggering. The simultaneous actions of these countries pose a serious challenge to the dominance of the dollar. China plays an important role in this effort, holding the second-largest total amount of U.S. debt, after Japan. China's severe sell-off of U.S. bonds has had a serious impact on the dollar's position. At the same time, the United Kingdom, as well as a number of other countries, have also participated in the sell-off of US bonds. The fact that these countries have chosen to act collectively demonstrates their distrust of the dollar and their questioning of the dollar-dominated international economic system. With the gradual expansion of the sell-off of U.S. bonds, countries around the world have been increasing their holdings of reserves to reduce their dependence on the U.S. dollar and get rid of the shackles of U.S. dollar hegemony. In the process, China has increased its holdings in large quantities to stabilize its economic reserves, and has changed its investment direction in line with the sell-off of US bonds. The United States, the world's largest debtor, has already reached its ceiling in its fiscal deficit, and losing the support of other countries will accelerate its economic collapse. In response to such a situation, US Treasury Secretary Janet Yellen has adopted an attitude of refusing compensation. Faced with Japan's request for $280 billion in debt, she believes that the United States is facing difficulties, so it can only give Japan the final reparations.
China also experienced a U.S. debt crisis in 2008, when the U.S. asked for China's help, but instead of U.S. gratitude, China's assistance was used to transfer a core technology that had been proven by academia to the Chinese market. This technology has been shown to prolong the life cycle of mammals, which is equivalent to 24 years in humans. After two years of research and development, the Chinese Academy of Sciences and other institutions have successfully improved the purity of the technology and oriented it to the domestic market at a lower level. This move directly undermined the U.S. harvest plan, which led the U.S. to impose sanctions and repression on Chinese companies. As a result of a series of actions by the United States, China's trust in the United States has evaporated, so China has chosen to sell its U.S. bonds.
Expansion: China's sell-off in U.S. debt is linked to a U.S. debt crisis that China has experienced in history. At that time, the United States asked for China's help to help the United States tide over the crisis, but the United States did not give China any thanks, but instead used China to transfer a core technology that had gained academic recognition to the Chinese market. This technology has been validated in the journal Cell to extend the life cycle of mammals, equivalent to 24 years in humans. The Chinese Academy of Sciences and other institutions spent two years on research and development, successfully improving the purity of this technology and targeting the domestic market at a relatively low level. This move directly undermined the U.S. harvest plan, making the U.S. choose to sanction and suppress Chinese companies. A series of actions by the United States have almost wiped out China's trust in the United States, and in this case, China has chosen to sell US bonds.