The U.S. Economy and Global Finance: Power Tactics and Trends
The United States, the world's largest economy, pays attention to economic data, but its methods are questionable.
The U.S. government, at the time of the financial crisis, issued a large number of U.S. bonds; US central bank, raising interest rates to divert debt pressure. Among them, the Japanese government is the largest holder of U.S. bonds outside China.
Despite the Bank of Japan's huge investment, it has not been able to reverse the recession.
Today, however, the financial crisis has escalated, the Bank of Japan has counterattacked, the price of US bonds has fallen, and the supremacy of the US dollar has been shaken.
What is the reason for this?
Why does Japan, which has always been obedient to the United States, dare to attack the boss?
Is there still a market for U.S. bonds?
According to the latest data, US government bond yields rose by 1.3 percentage points. But why is the U.S. bond market calm?
The U.S. keeps raising interest rates, raising concerns, and bonds are starting to sell away, away from the U.S.
There is no denying that China is wise. Over the past decade, we have gradually reduced our U.S. debt, and although we are still the largest holder of U.S. debt, we have not lost much. The pace of reduction is increasing, and the United States is helpless. Abandoning U.S. debt completely will face more challenges and pressures.
Holders of U.S. debt are clearly risky.
Under the pressure of the United States, Japan reduced its holdings of US debt.
Japan holds a large amount of U.S. debt and reduces its holdings on a large scale, which has hit the U.S. economy hard.
Japan has been working on the economy for many years, and now the Federal Reserve is raising interest rates to curb the pace of Japan's development.
The U.S. is also looking for new buyers of U.S. bonds to ensure it is well funded.
In adjusting the economic structure, the United States has a venture capital environment. Balance external debt with internal debt to ensure a sound economy.
The United States had to continue to issue bonds and maintain its global monetary hegemony.
At present, the global economy is globalized, and the economies of countries affect each other.
There is no doubt that the problems of the United States stem from being too arrogant and trying to intervene in the affairs of other countries.
Intervention required troops, resulting in huge military expenditures and increased debt.
This led to the US financial crisis, domestic turmoil, and the decline in the influence of the US dollar.
The decline of the US dollar has impacted the international status and economy of the United States.
The only option for the United States is not to interfere in other countries and reduce military spending, otherwise the dollar may collapse.
World monetary patterns and their impact on the continent
Today, Japan has loose monetary policy, which has led to inflation and the yen has suffered.
Japan's already severe fiscal deficit and bleak development prospects have been exacerbated by this. The debt crisis has intensified.
Diversification of Japanese government bond issuance. Public market and private placement offerings alternate.
Increase funds, increase debt. Private and financial institutions are highly resolvent. But the lesser of two evils.
The financial crises in the United States and Japan have posed severe challenges to the mainland's financial system.
Hidden debt risks on the mainland are particularly prominent, such as time bombs.
The seriousness of the debt crisis needs to be confronted.
Promote the internationalization of RMB and let more countries understand the value of RMB.
Putin is full of confidence in China, Russia promotes a non-dollar settlement policy, and uses the yuan for business.
Over time, there will be more of this, with the renminbi's dependence on the dollar decreasing and the value of the renminbi climbing.
At the end of the day, or not the dollar, China's economic rise is trustworthy.