On January 2, local time, the U.S. Treasury Department released a report showing that the total U.S. national debt reached $34 trillion for the first time, a record high, and this was several years earlier than the previous **. The U.S. economy has all but stagnated due to the pandemic, causing debt to grow faster than expected. While both former Trump and current Biden have borrowed heavily, the cost of repaying debt has increased as inflation soars and interest rates rise as the economy grows. In addition, Biden** is currently planning to borrow nearly $1 trillion more by the end of March, which makes the U.S. debt problem even more serious and a political and economic challenge.
With the highest national debt in history at $34 trillion, the United States is facing unprecedented fiscal pressures. This figure exceeded expectations and was several years earlier than originally expected, all due to the pandemic brought on by the pandemic. The pandemic has led to a severe downturn in the U.S. economy, with many industries coming to a standstill, causing huge economic losses. In response to economic difficulties, the United States** opted for massive borrowing to cover its budget deficit, but this practice led to rapid growth. In addition, inflationary pressures in the bond market have also led to an increase in interest rates, making it significantly more expensive to repay debt. Against this backdrop, Biden still plans to borrow nearly $1 trillion more in the near future, which will bring more serious problems to the country's finances, as well as huge political and economic challenges.
Despite the all-time high of the US national debt, Biden has not stopped borrowing. This has raised concerns among some financial institution analysts, who see the practice of increasing debt as a red flag. At the same time, U.S. creditors such as China, Japan, South Korea, and European countries have continued to reduce their holdings of U.S. Treasuries. China, one of the largest creditors of the United States, has sold off US Treasury bonds for seven consecutive months, and its total holdings are also close to the lowest level in 14 years. Faced with this situation, US Treasury Secretary Janet Yellen has long turned her attention to China, seeking its support and cooperation.
In the face of the staggering figure of the US national debt gradually approaching $34 trillion, Biden still insists on continuing to borrow, which has raised concerns among experts. These experts see such a rapid increase in debt as a warning sign that the United States faces significant economic risks. In addition, creditors such as China, Japan, South Korea, and European countries have continued to reduce their holdings of U.S. Treasuries. China, one of the largest creditors of the United States, has sold off US Treasuries for seven consecutive months, and its total debt holdings are close to the lowest level in 14 years. The situation prompted U.S. Treasury Secretary Janet Yellen to turn to China for its support and cooperation to help resolve the looming fiscal woes.
In her recent speech, Yellen expressed her willingness to strengthen economic cooperation with China and said that Biden will manage the U.S.-China economic relationship carefully and responsibly. She stressed that the United States does not want to decouple from China and plans to establish a lasting channel of communication to deal with issues that arise on both sides. Yellen plans to visit China for the second time this year and will focus on climate change and cooperation in financial markets. She also criticized Trump's China policy, arguing that it has undermined America's global standing and missed out on major economic opportunities. China's spokesperson responded to Yellen's remarks, emphasizing that the development of healthy and stable China-US economic and trade relations is beneficial to both sides and the world, and hopes that the US side can match its words with deeds and not impose sanctions on Chinese companies.
In her recent speech, Yellen made clear her intention to strengthen economic cooperation with China and insisted that Biden would manage the U.S.-China economic relationship in a prudent and responsible manner. She stressed that the United States does not want to sever ties with China and plans to establish a lasting channel of communication to deal with problems that may arise in cooperation between the two sides. As Treasury secretary, Yellen plans to visit China for the second time this year and will focus on cooperation on climate change and financial markets. In her speech, Yellen also criticized Trump's China policy, arguing that it has made the United States more vulnerable and isolated, missing out on many important economic opportunities. In response to Yellen's speech, China's spokesperson emphasized the importance of developing a healthy and stable China-US economic and trade relationship for both sides and the world, and hoped that the US side would match its words with deeds and not impose unreasonable sanctions on Chinese companies.
At present, the total US national debt has exceeded 34 trillion US dollars, and Biden** is helpless under financial pressure and turns to China for help. China, as one of the largest creditors of the United States, continues to ** US Treasury bonds, so that Biden has to turn his attention to China. U.S. Treasury Secretary Janet Yellen said Biden wants to strengthen economic cooperation with China, does not seek "decoupling," and plans to establish a lasting channel of communication to deal with issues that arise on both sides. However, the direction of China-US economic and trade relations is still uncertain, and a spokesperson for China called on the US side to match its words with deeds and not to impose sanctions on Chinese companies. In December, U.S. Treasury Secretary Janet Yellen attended and delivered a speech at the 50th anniversary celebration of the U.S.-China Business Council in Washington, D.C., according to Bloomberg. Yellen emphasized the importance of a lasting channel of communication between the U.S. and China, and said Biden would manage the U.S.-China economic relationship in a "purposeful, prudent, and responsible" manner.
Yellen also said that the U.S.-China relationship needs to be coordinated in a range of areas, including climate change and financial markets. She plans to make a second visit to China in a ** capacity and will hold discussions with China to address areas of difficulty for both sides.
Yellen's remarks suggest that the United States** is trying to improve its economic partnership with China and seeking China's support to deal with the record high of the total U.S. national debt. It should be noted, however, that Chinese and other foreign buyers are continuing to reduce their holdings of U.S. Treasuries, which means that China may not be willing to be a savior of the U.S. debt problem. So it remains to be seen how Yellen will address this dilemma in her engagement with China.