China borrows money? The U.S. government is facing a shutdown due to 121 countries dumping U.S. bond

Mondo Finance Updated on 2024-02-01

The original article states that the reason the United States is facing a "shutdown" is the disruption of funding, which has led to the possible firing of thousands of federal workers and the cessation of service. This is mainly due to the fact that some departments rely on temporary appropriation funds to stay afloat, which are about to be depleted. Although the bipartisan delay in the closure date in Congress is only a stopgap measure. Once the final time expires, multiple departments will be affected, and even closures may occur.

In addition to that,United States**Exorbitant spendingBudgetIt also led toU.S. TreasuriesThe market is in crisis. According to reports, the total US national debt has exceeded $34 trillion in 2024, which means that interest payments will account for one-third of the US fiscal revenue. U.S. Treasuriesis growing, and most countries around the world are starting to sellU.S. Treasuries, embarked on the path of "de-dollarization". Long-term borrowingUnited States**Now we are facing a difficult situation.

The original article mentioned that the purpose of US Treasury Secretary Yellen's visit to China last year was likely to force China to buyU.S. Treasuries, but China is not willing to accept such a request. While Yellen intends to visit China again and seek support from China, China does not intend to increase its holdingsU.S. Treasuries。China believes that cooperation is meaningful only under the premise of equality and mutual benefit. The U.S. is only seeking to force China to buyU.S. Treasuries, and selectively ignore the repression and sanctions imposed on China. China does not see the sincerity of the United States and cannot accept this unequal cooperative relationship.

From a realistic point of view, China should continue to **U.S. Treasuries, because "de-dollarization" has become a global trend. The decline of dollar hegemony is an indisputable fact. Therefore, in the long run, it is necessary to sellU.S. Treasuries。Now the United States can no longer influence China's decision-making through coercion and inducement, and their methods no longer work.

In the face of the impending shutdown crisis,United States**Solutions need to be found. One of the best ways to do this is to have other countries buy itU.S. Treasuries, especially in an economically powerful country like China. China, however, is reluctant to be a U.S. borrower. In the long run,United States**Measures need to be taken to reduce spending, to lowerBudgetdeficit and look for a solutionDebtA long-term approach to the problem.

From the above point of view,United States**Behind the risk of closing its doors is its exorbitant spendingBudgetwithDebtIssue. The United States has long relied on borrowing to keep its economy afloat, and that has doneDebtGrowing bigger and bigger, putting the United States in a situation where the burden is unbearable. Although the United States wants China to buyU.S. Treasuriesto alleviate the crisis, but China is reluctant to be a loan to the United States. On the contrary, China is firmly pursuing a "de-dollarization" strategy,**U.S. Treasuriesto protect their own economic interests. In the future,United States**More responsible and sustainable measures are needed to address itDebtReducing dependence on other countries is the only way to achieve long-term economic stability and development. chinatolendmoney?theusgovernmentfacesashutdownduetothesaleofustreasurybondsby121countries.janetyellenmayseekhelpduringhervisittochina?

financialissuesoftenh**efar-reachingimplications,andthepotentialshutdownoftheusgovernmentduetothesaleofustreasurybondsby121countriesisnoexception.theunitedstates,astheworld'slargesteconomy,isfacingacrisisthatcouldleadtoagovernmentshutdown.thissituationhasnotgoneunnoticedbyfinancialexperts,especiallyasitmightprompttheusgovernmenttoseekassistancefromchina.

butwhyistheusgovernmentatriskofshutdown?onthe12thofalocaltime,thewhitehousenotifiedseveralgovernmentagenciestoprepareforapotentialshutdownasfundsrundry.thiswouldresultinthefurloughofthousandsoffederalworkersandthesuspensionofcertaingovernmentservices.somemayquestionhowtheworld'slargesteconomycouldfaceafinancialshortfallthatwouldleadtoashutdown.however,therealityisthatskyrocketingusdebthasplungedtheeconomyinto**iciouscycle.byearly2024,usnationaldebtexceededarecord

34trillion,withinterestpaymentsaloneconsumingapproximatelyone-thirdofthecountry'sfiscalrevenue.inotherwords,thesnowballingdebtcontinuestogrow,andwashingtonmaysoonfaceashortageof***billsforprinting.

furthermore,lastyearsaw121countriescollectivelyselloffustreasurybonds,indicatingthatthevastmajorityofnationsintheworldaregraduallyrealizingthedeclineoftheusdollarhegemonyandembarkingonthepathof"de-dollarization".thistrendposesanunprecedentedcrisistotheustreasurybondmarket.moreover,theexorbitantexpenditureoftheusgovernmentle**esnoroomforadecreaseinusdebt.accordingtotheproposedbudgetforfiscalyear2024,theuscongressplanstoallocate

704billionfornon-defensespending,totalingastaggering

1.5trillion.thesefiguresareremarkableonaglobalscale,withdefenseexpendituresalonesurpassingthecombinedtotalofthetop9countriesinmilitaryspending.theusgovernmentrelieshe**ilyonlong-termborrowingwhilefacingashortageoffunds,leadingtoanembarrassingsituation.

so,howwilltheusgovernmentsolvethisproblem?thebestsolutionwouldbeforsomeonetobuyustreasurybonds,especiallyaleadingeconomicpowerlikechina.thisislikelythereasonbehindformerustreasurysecretaryjanetyellen'svisittochinalastyear.sheaimedtopressurechinaintobuyingustreasurybonds,butchinawasnotinterestedinthisproposal.however,theusgovernmentisnotgivingup.priortotheapecconferenceinsanfranciscolastyear,yellenreleasedinformationthatsheplanstovisitchinaagainin2024.itishighlylikelythatshehopestoseekchina'seconomicsupport,particularlyintheformofbuyingustreasurybonds.nevertheless,chinaisunlikelytoacceptthisproposition.theunitedstatesonlyconsidersusingchinatopurchaseustreasurybonds,disregardingtheoppressivesanctionsandmeasuresimposedonchina.intheabsenceofanysincerityfromtheusside,chinaseesnoreasontocooperate,exceptonthebasisofequality,mutualrespect,andmutualbenefit.moreover,fromapracticalstandpoint,chinashouldnotincreaseitsholdingsofustreasurybonds."de-dollarization"hasbecomeaglobaltrend,andthedeclineoftheusdollarhegemonyisanundeniablereality.therefore,itisessentialforcountriestoreducetheirrelianceonustreasurybondsinthelongrun.thetacticsofcoercionandenticementemployedbytheunitedstatesarenolongereffective.

insummary,theusgovernment'spotentialshutdownisrootedinitsexcessivespendingbudgetanddebtproblem.thecountryhasreliedhe**ilyonborrowingtosustainitseconomyforalongtime,whichhasledtoanever-growingdebtburdenandplacedtheusinanunsustainableposition.whiletheushopesthatchinawillbuyitstreasurybondstoalleviatethecrisis,chinaisnotinterestedinbeingalendingsourcefortheus.instead,chinaissteadilypursuinga"de-dollarization"strategyandreducingitsholdingsofustreasurybondstoprotectitsowneconomicinterests.inthefuture,theusgovernmentneedstotakeresponsibleandsustainablemeasurestoaddressitsdebtproblemandreduceitsdependenceonothercountriesinordertoachievelong-termeconomicstabilityandgrowth.

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