Text | Observe Jun
A big move! 545 billion U.S. bonds have been sold! The collapse of three U.S. banks is just the beginning, and China has officially taken action!
According to the latest U.S. report, the mainland's position in U.S. bonds is continuing to decrease, and there are currently only 775 billion U.S. bonds left, a new low since 2009. In addition, further detailed data also show that since last year, the pace of the mainland's sell-off of U.S. bonds has accelerated, and in the 13 months to February this year, the mainland has maintained a record of selling U.S. bonds for 11 consecutive months, and the total size of U.S. bond holdings has decreased by 42%, and a total of 545 billion U.S. bonds have been sold.
It should be said that behind the country's large-scale sell-off of U.S. bonds, it actually reveals an unusual signal, the U.S. debt crisis is likely to break out, and the U.S. economy may also have problems!
During this period, with the escalation of the Israeli-Iraq conflict, the United States, which was involved in it, began to see several consecutive declines in domestic stock prices, setting a record for the longest consecutive decline in more than a year. In addition, the fading of the expectation of a U.S. interest rate cut has also set off a new wave of U.S. bond selling, resulting in a large outflow of funds.
According to data disclosed by a U.S. financial website, the largest outflow of fund assets in the U.S. banking market since Lehman Brothers saw a sharp drop of $112 billion last week, the largest two-week decline on record. At the same time, the U.S. banking sector also saw a large-scale withdrawal of deposits last week, which directly led to a plunge of more than $330 billion in total U.S. deposits and fund assets.
I believe many people still have the impression that in March last year, three regional banks in the United States suddenly collapsed, because high interest rates caused huge losses in the banks' US bond portfolios, which in turn led to a bank crash, and this incident also further reflects the current fragility of the US banks, and the high interest rates have benefited the US banks, but they have also intensified the operating pressure of the US banks.
And our country, obviously, has also seen the possible outbreak of the financial crisis in the United States, which is why it will continue to sell US bonds in a big way. In addition, the latest public data also shows that China has officially made a move, according to data released by the State Administration of Foreign Exchange, in addition to selling US bonds for 11 consecutive months, the mainland has also increased its gold reserves by about 314 tons for 17 consecutive months.
Behind the country's increase in gold reserves is the shorting of the US dollar. Some friends may not understand that in the financial industry, there has always been a law that gold is weak, the dollar is strong, gold is strong, and the dollar is weak.
And now the country is selling US bonds to increase its holdings of gold, to put it bluntly, it is a gamble, betting that gold will eventually defeat the dollar, and US finance has collapsed since then. And if we get it right, it may be an opportunity for the renminbi to replace the dollar as an international currency.
As things stand, the opportunity is on our side. The Federal Reserve's behavior of resolving inflation by constantly raising interest rates seems to be effective, but in fact it has also planted a time bomb for U.S. finance, and the more than 700 billion U.S. bonds held by the mainland at this stage seem insignificant compared with the total size of U.S. bonds, but at a critical moment, if used properly, it may become a "fuse" and completely detonate the mine of U.S. finance.
Anyway, let the bullets continue to fly for a while, the show is still ongoing!