U.S. Treasury Secretary Janet Yellen bluntly pointed out at the annual meeting of the Global Initiative that there are serious problems with the current U.S. policy, and if it continues, it will deal a devastating blow to the financial credibility of the United States.
Reputational bankruptcy is an unbearable burden for any country, as it implies an extremely high risk.
Yellen's remarks have sparked widespread attention and discussion around the world, and may even affect her political career.
For Yellen, however, leaving may be a relief ......
Why does Yellen have such a view? First of all, it should be emphasized that the United States has maintained a leading position in the world for a long time, which proves that the United States has a number of capable people and officials.
At no time can you ignore the strength of your opponent.
Yellen, the U.S. Treasury Secretary, stands out among the many dignitaries with a unique strategic vision. Compared with Biden's blind attitude towards China's sanctions, Yellen resolutely opposes "decoupling" from China.
The phrase "the world can tolerate the common development of the two countries" is still deeply believed by the majority of netizens at home and abroad.
As a politician who grew up in the United States, Yellen has always put American interests first. She made this remark with the intention of promoting the U.S. economy through cooperation. Indeed, such a path is what the United States should take.
In order to achieve this goal, Yellen even visited China herself, and on several occasions emphasized the need to strengthen exchanges with China. Some believe that her visit was to sell U.S. debt, but that is only part of the reason.
In fact, she did express a desire for cooperation, which is clearly different from Biden and others, who are hardliners on China. And Yellen doesn't just pay lip service, she's a very practical politician.
During her visit to China, she had extensive and specific communication with China in a number of areas, and if Biden does not blindly sanction China, then China and the United States may make new progress with Yellen's efforts.
However, although Yellen is the Treasury Secretary and has the power to control the country's economy, under Biden's decision to impose comprehensive sanctions on China, she is powerless even if she has the heart. In the end, she could only watch the deterioration of Sino-US relations.
In her mind, the direction of Sino-US relations is not the most important, but she is more concerned about how to promote economic development under the current situation of the US economy.
Yellen was disappointed to find that although Biden claimed that full sanctions against China could promote the rapid development of the American economy, in fact, the economic development of the United States slowed down after reducing communication with China.
In addition, the U.S. sanctions on China have prompted China to accelerate the internationalization of the renminbi, which has had an impact on the U.S. dollar. Even more worrying to Yellen is that policymakers don't realize their recklessness.
Yellen argues"It is unwise for American politicians to rush into decisions without full understanding. "
Only by respecting facts can we make wise decisions, and the subjective assumptions and self-righteousness of US politicians have already caused huge losses to the United States. With Trump's unilateralism and Biden's stubbornness, Yellen's disappointment is naturally indescribable.
In addition to this, Yellen is also angry at the strategic decision of the United States, because the United States sanctions China and Russia at the same time, which is undoubtedly stupid.
According to conventional logic, it should be the boss who pulls the third child against the second child, rather than the boss against two at the same time, which shocked Yellen deeply.
Yellen is incomprehensible about the methods of seizing Russian assets and restricting her banks' access to the SWIFT payment system, which she believes will only lead Russia to come closer to China.
The seizure of Russian assets by the United States may cause significant short-term losses to Russia, but the problem is that it will completely deprive the United States of the Russian market, as Russia may abandon the use of the dollar as a foreign exchange reserve.
This kind of harm to others and self is obviously not in line with the past behavior of the United States, as a dissatisfaction with Biden's decision-making, Yellen directly expressed her views at the meeting.
Biden is reportedly unlikely to allow his men to criticize his decisions, hence speculation that Yellen may leave the Treasury secretary's position. However, Yellen cannot leave her post at the moment, because in the financial situation of the United States, it is difficult to find a more suitable person than her to deal with the financial problems of the United States.
You must know that the size of the U.S. national debt has exceeded 30 trillion US dollars, which is larger than the annual GDP of the United States, coupled with the increasing military budget and aid to Ukraine in the United States, the financial pressure on the United States is very high.
The fate of US bonds is related to the development interests of the United States. Yellen's departure could put U.S. debt in a difficult position, and if the U.S. refuses to repay it, the dollar's credit will collapse.
The dominance of the US dollar has enabled the United States to achieve huge development benefits, and the loss of credit will accelerate the decline of the United States, and even basic operation may face difficulties. While the United States has smart people and solutions to problems, the key is whether they can recognize reality.
Against the current backdrop, the only way to promote the development of the US economy is to abandon our egos and sincerely cooperate with China and Russia. It is only through collaboration and sharing that the greatest benefits for the United States can be achieved.
Therefore, a win-win strategy is a wise move for the United States.