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Over the past few years, the U.S. government's fiscal deficit has become increasingly serious.
It is a huge country, but it is constantly relying on borrowing for development. At the same time, the number of US national debt has reached the previously set maximum ceiling.
As the size of the U.S. debt continues to grow, there is a high risk of default if it continues to expand.
In the case of the continuous expansion of the scale of the U.S. national debt, Russia has been selling U.S. bonds frantically, especially after the outbreak of the Russia-Ukraine conflict, Russia has almost sold all the U.S. bond funds it holds.
At present, the United States is facing a very serious debt crisis, even if the size of the national debt has peaked or even exceeded the debt ceiling, the US government has not reined in borrowing.
The United States continues to use the hegemony of the dollar to loot all kinds of economies and wealth around the world, and more and more countries have begun to realize the impact that this behavior of the United States will have on the global economy.
It is precisely because of this that in recent years, more and more countries have joined the ranks of dollarization.
Against this backdrop, China has also significantly reduced its holdings of U.S. bonds.
In the past, the mainland ranked first in the world in terms of the amount of U.S. bonds it held, especially in 2013, when China held more than $1.3 trillion in U.S. bonds. Compared with that time, the number of US bonds held by the mainland has dropped sharply.
Not long ago, Yellen, the head of the US finance department, visited China for six days, and this time she had a very important goal of the Chinese trip, hoping that the Chinese side would continue to buy US Treasury bonds.
For many years, China has been ranked No. 1 in terms of the amount of U.S. debt it holds.
Not long ago, the relevant departments of the United States released the ranking of foreign holdings of U.S. bonds and the ranking of countries that have reduced their holdings of U.S. bonds.
Among them, the number of U.S. bonds reduced by the mainland, Switzerland, Ireland and other countries rose sharply. In addition, countries such as Japan, Canada, the United Kingdom, and Luxembourg have increased their holdings of U.S. debt compared to before.
Judging by the data released in February, Switzerland has reduced its holdings of US bonds the most. It is understood that Switzerland has also been reducing the scale of its holdings of U.S. bonds in recent times.
Compared with Switzerland, the mainland also holds more than $22 billion less US debt than before.
As the number of U.S. Treasury bonds continues to rise, and China, Russia, and some other countries sell off U.S. bonds in large quantities, who will be the new holders of U.S. bonds?
Debt issued by the United States is actually a financial product, and the return of this product is inversely proportional to the price, and the lower the price, the higher the yield.
Due to the large issuance of Treasury bonds in the United States, the yield on US Treasury bonds has gradually risen. For investors, the value of U.S. Treasuries has also fallen.
In order to reduce the negative impact of the decline in the value of U.S. bonds, many holders have reduced their holdings of U.S. bonds.
With the continuous development of the mainland's economy, the structure of foreign exchange assets has also been continuously optimized, and the structure of foreign exchange reserves has gradually developed from a relatively single foreign exchange reserve structure to a diversified asset allocation.
Recently, this is even more evident in the data released by the relevant departments. It is understood that in order to further expand foreign exchange reserves, the central bank has purchased a large amount of gold, and the proportion of mainland gold foreign exchange reserves has increased by 5% compared with before.
At the same time that China has sold off US bonds in large quantities, some countries that are closer to the US have begun to increase the flow of US bonds, such as Japan.
Judging from Japan's recent foreign exchange reserves, it has once again increased its holdings of US bonds on a large scale, and Britain is not lagging behind, resulting in a substantial increase in US bond holdings.
Just when people thought that Japan and the United Kingdom would become the countries with the largest holdings of U.S. bonds, a bombshell news came out, which also attracted the attention of many central banks.
After the issuance of U.S. bonds, in addition to some central banks buying these bonds, in fact, some bonds flowed into U.S. companies or government-related agencies.
Judging from the latest data released by the relevant departments of the United States, although Japan and the United Kingdom have increased their holdings of U.S. bonds compared with before, they are the receivers of large-scale holdings of U.S. bonds. The Fed was the one who eventually bought a lot of US Treasuries.
You must know that the US economy has had serious problems in recent years, especially the domestic inflation problem, which is very serious. In addition, the US government has been constantly stirring up the international situation, and has also invested a lot of money in some local areas.
It can be said that the current US government is not financially adequate, and there is even a serious shortage of money. It is against this background that the United States is in dire need of a helper who can help it alleviate economic pressure, which is the main reason for Yellen's previous visit to China.
However, Yellen's intention is difficult to achieve, but for the United States, it is necessary to increase the government's fiscal revenue by issuing Treasury bonds, and the Fed has taken over a large part of the dollar Treasury bonds.
What do you think about the sale of U.S. bonds? Welcome to discuss in the comment area!