The Spring Festival is still three days away, and while the Chinese are celebrating the New Year with joy, the US Treasury Department has sent a delegation to China impatiently. On the evening of February 7, the New York Community Bank once again **22%, a short-term decline of up to 70%, the US debt crisis hit again, so this delegation is to pave the way for Yellen's "second palace" China and still ask China?
Asking for China?
According to the Observer Network, on February 5, local time in the United States, a ** of the U.S. Treasury Department revealed that a delegation of five Treasury departments led by Deputy Secretary Chambeau will go to China later this week.
The reason they gave was that they would have a "frank dialogue" with our side on economic issues such as electric vehicles and tariffs in both countries.
The choice of this point in time is intriguing, later this week, after Thursday, on the 29th of the Lunar New Year in our country.
Something is impatient, and I have to get stuck at this point of the New Year in my country.
Obviously, there must be something in the United States that urgently needs to communicate with China to get our help.
The most obvious is the second banking crisis in the United States, following last year's Silicon Valley Bank bankruptcy crisis.
Real estate banks in the United States, represented by New York Community Bank, have recently ushered in **, and New York Community Bank has fallen by more than 70%.
Other similar banks are the same**, and they are likely to detonate the US banking crisis again, no less than last year's Silicon Valley Bank.
Then, the delegation's urgent visit to China at this time can still have a close relationship with the domestic economy of the United States.
The New York Times said that this is very likely to pave the way for US Treasury Secretary Yellen's visit to China again.
If Yellen's visit to China last year was to break the gap between China and the United States, then this visit to China must be to reach some kind of consensus or seek China's help.
Otherwise, she would not have had to come to China again, because Sino-US relations are not in the most harmonious period now.
As many ** and Treasury ministers of the Treasury Department, the natural focus is on the financial problems of the United States itself.
The domestic fiscal problems of the United States can be summed up in two words--- US debt.
As of Feb. 7, the total U.S. Treasury debt has reached 34$1 trillion, which is equivalent to every American carrying about $100,000 in debt, or about 1 million yuan.
Not only that, but you must know that the minimum interest rate of these US bonds is also 4%, and the highest has been close to 6%.
Even at the lowest interest rate, the U.S. debt would double in 18 years.
This is still the premise that the United States does not add new debt, and if it is calculated at an average of 5%, the debt of the United States will double in about 10 years.
The true face of this "largest Ponzi ** nuclear bomb on the planet" is gradually emerging.
On the one hand, the United States stimulates economic growth and maintains it by issuing large amounts of money and debt
On the other hand, these debts have been passed on to other countries and the overall growth of the world economy through means such as wars and technological blockades.
This vicious circle has not only exacerbated the instability of the global economy, but also deepened the differences and contradictions in the international community.
However, China, one of the largest creditors of US Treasuries, has been selling US bonds for the past 25 months.
China's choice is not a helpless move, but is based on a sober understanding of the global economic situation and a rational consideration of its own interests.
We are well aware that over-reliance on external resources will not only fail to achieve sustainable economic growth, but may also lead to a passive position.
Therefore, we have been working hard to optimize our fiscal policy to achieve autonomous and controllable economic control.
However, the United States still insisted on going its own way, trying to harvest global assets by raising interest rates, but the United States itself could not hold back first.
The banking crisis has resumed
Following last year's Silicon Valley Bank crisis, the U.S. banking crisis broke out again, will the U.S. financial crisis be ignited this time?
The U.S. banking sector is once again in turmoil, and a crisis of small and medium-sized banks, represented by the New York Community Bank, is spreading rapidly.
On the evening of February 7, the stock price of New York Community Bank exceeded 22%, and it fell by more than 70% in a few days.
This crisis is inextricably linked to last year's successive interest rate hikes, and the decision of the United States to postpone interest rate cuts directly led to the outbreak of this "black swan" event.
Looking back at last year, the United States ostensibly raised interest rates continuously in order to curb inflation, and although this policy controlled inflation to a certain extent, it also put tremendous pressure on the banking industry.
The Silicon Valley Bank bankruptcy crisis is a direct consequence of this series of interest rate hikes.
Today's New York Community Bank happens to be the "white knight" who took over the "Signature Bank" at that time, and now it seems that it is just a "microcosm" of the US bond Ponzi **.
Today, history seems to be repeating itself, and this time, the center of the storm has shifted to small and medium-sized banks, whose main business is property lending.
As one of the important small and medium-sized banks in the United States, the New York Community Bank's business is mainly focused on commercial real estate loans.
However, with the volatility in the housing market and the continued impact of interest rate hikes, the asset quality of these banks is beginning to be seriously challenged.
The crisis quickly spread to other small and medium-sized banks, such as Silicon Valley National Bank, Ozark Bank, and Alleynes Bank of the West, which also focus on commercial real estate lending, and their stock prices also dived, and some fell nearly in half.
The share prices** of these banks have not only caused huge losses to investors, but also sent the entire banking industry into a panic.
Originally, the market widely expected that the Fed might cut interest rates earlier in order to ease the stress in the banking sector.
However, the United States has chosen to postpone interest rate cuts in order to harvest other countries, which has undoubtedly put more pressure on the already precarious banking sector.
The high interest rate environment has really constrained the growth of American business.
In this context, businesses and investors are more inclined to maintain liquidity and reduce riskier expansion plans. This contraction strategy is particularly evident in the commercial real estate market.
The downturn in the commercial real estate market has directly led to a huge decline in earnings in real estate-related industries.
For small and medium-sized banks that rely on commercial real estate loans, the downturn in real estate has undoubtedly increased their debt pressure.
These banks account for more than 70 percent of U.S. commercial real estate lending, and as a result, they are at great risk.
This is also one of the important reasons for the recurrence of the banking crisis in the United States.
Against this backdrop, the loan overdue rate of commercial real estate in the United States has been rising, which has become a problem that cannot be ignored.
The rise in overdue rates will not only affect banks' asset quality, but may also trigger a ripple effect that will further exacerbate the turmoil in financial markets.
Why, then, does the US insist on maintaining a policy of high interest rates, seemingly blind to its own financial security?
This is actually closely related to the financial war.
In the current international economic environment, the United States may believe that by maintaining high interest rates, it can curb domestic inflationary pressures and improve the international status of the dollar.
In addition, high interest rates have also helped attract foreign capital inflows, thereby strengthening the U.S. economy.
However, this policy choice also brings with it obvious ***
The recession in the commercial real estate market and the outbreak of the banking crisis have undoubtedly brought considerable obstacles to the recovery of the US economy.
High interest rates may also exacerbate global economic imbalances, trigger more frictions and financial turmoil, and lead to a shortage of dollars and assets in many developing countries.
The financial warfare considerations behind the high interest rate policy in the United States are a complex and profound issue.
The United States seems to be caught in a dilemma between pursuing financial security and economic interests, and how the United States will balance these contradictions in the future will be the focus of attention of global financial markets.
Under the influence of such internal and external troubles, the meaning of the US Treasury Department's visit to China again is very obvious, that is, to seek China's cooperation and help, and US debt is an indispensable link.
In February, the dynamic incentive plan between China and the United States entered a sprint Although the United States chose to communicate with China and seek help on the one hand, on the other hand, the United States still tried to limit our development in various fields, and this contradictory approach also shows that the game between China and the United States has entered a sprint stage.
According to the Observer Network on February 5, Carlos, a member of the U.S. "China Committee", made remarks, claiming that the United States must surpass China in the field of artificial intelligence, and strictly restrict and censor Chinese companies, otherwise it will lag behind in the first field.
The remarks once again exposed the anxiety of American politicians in the competition in technology, and their ugly face of unscrupulous efforts to suppress China's development.
U.S. politicians have always been adept at creating tensions and portraying China as an enemy that threatens U.S. technological supremacy.
Their claim that "China poses a military threat to the United States in the field of artificial intelligence" is nothing more than an excuse, and their real intention is to cover up their unease and jealousy of China's rapid development in the field of science and technology.
In order to maintain its scientific and technological hegemony, the United States does not hesitate to use national power to suppress China.
They banned semiconductor companies from exporting high-end AI chips to China and demanded that cloud computing companies publish a list of Chinese users, in an attempt to contain China's development in two key areas: chips and algorithms.
However, the United States seems to have forgotten a simple fact: scientific and technological development is the common wealth of people all over the world, not the private property of a certain country.
In the face of US suppression, China did not choose to give in.
Instead, China has opted for self-reliance, speeding up basic scientific research, building its own databases, and exploring new algorithms.
This perseverance is the key to China's great achievements in the field of science and technology.
In fact, China has made remarkable achievements in the field of artificial intelligence.
Through unremitting efforts, Chinese researchers and entrepreneurs have made important breakthroughs in many fields such as speech recognition, image recognition, and natural language processing.
These achievements have not only brought tangible economic benefits to China, but also made important contributions to global scientific and technological progress.
American politicians should understand that technological competition is not a zero-sum game, but a process of win-win cooperation.
Attempts to contain China's development through repression and sanctions will not only not succeed, but will harm the interests of the United States itself.
In this era of globalization, no country can be left alone, and common progress can only be achieved through cooperation and exchange.
China will continue to unswervingly promote scientific and technological innovation, not only to meet the needs of its own people, but also to promote global scientific and technological progress.
If the United States wants to cooperate with China and seek China's help, it should not be able to suppress China and block other people's roads, which will only lead to its own nowhere to go in the end.
If the United States still insists on going its own way, not to mention Yellen coming in person, even if a person with a higher status comes, my country will still not give a good face, China emphasizes fairness and equality!
The suppression and smearing of China by American politicians in the field of artificial intelligence is just a doomed contest, and they should pay more attention to their own domestic economic problems, debt problems, and the simple truth that if you want to go abroad, you must first settle at home, and they don't seem to understand.
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