Arrogant!!!! No one bought U.S. bonds? Did Yellen come to China to ask for help?
Recently, I heard that at least 16 countries around the world are selling US Treasuries, including China, Belgium, Luxembourg, Ireland, Brazil, France, Saudi Arabia, Germany, Mexico, Israel, Kuwait, Colombia, Sweden, the Bahamas, Vietnam and Peru, and even Bermuda is selling US Treasuries.
It's not just big countries like China that are reducing their holdings of U.S. debt, but other junior brothers are also selling U.S. Treasuries. France sold $5.1 billion in U.S. Treasuries, and last year, France brought back all its gold reserves from overseas vaults such as the Federal Reserve; Germany sold $9.4 billion of US Treasury bonds, and Germany has made at least four requests to the Federal Reserve to return 700 tons of gold reserves; Israel sold $1.7 billion; Saudi Arabia sold $8.7 billion in U.S. Treasuries. These countries are selling US debt, so why are people still buying?
In fact, the largest U.S. debt reducer is the Federal Reserve, since the peak in early June 2022, the Fed has sold $435 billion of U.S. bonds, reducing its holdings to $5.34 trillion, and the Fed itself is dumping U.S. bonds, so U.S. bonds have plummeted, causing banks to lose a lot of money
In addition, China is gradually reducing its dependence on U.S. Treasuries, gradually moving money to other countries' bonds or gold. China's central bank has been reducing its holdings of U.S. bonds for 13 months and has continued to increase its holdings of gold, indicating China's gradual alienation from U.S. Treasuries.
For the United States, however, China's sell-offs and sell-offs from other countries have put enormous pressure. If there aren't enough buyers, the value of U.S. Treasuries will fall, exacerbating U.S. fiscal problems. And the Fed itself is selling US bonds, which makes the market increasingly uncertain about the outlook for US Treasuries.
In this context, Yellen's visit to China may seek China's help to keep the value of U.S. Treasuries stable and stabilize global financial markets. But with China's reduction of holdings of U.S. Treasuries and the sell-off of other countries, China may no longer support U.S. Treasuries as it has in the past.
In short, this situation has brought some uncertainty to global financial markets. Yellen's visit to China may provide some clues to the solution to the US national debt problem, but how to deal with the global financial problem still requires more complex and comprehensive solutions. You can leave a message to discuss and share your views.
