According to the latest statistics, the scale of U.S. debt has exceeded the $35 trillion mark, as the main channel for the U.S. government to borrow, due to China's reduction of U.S. debt holdings for two consecutive months and the U.S. GDP growth rate in the first quarter is much lower than market expectations, the sales of U.S. bonds have been difficult. In terms of solutions, the interest rate on newly issued U.S. bonds recently exceeded 4%, in an attempt to increase the attractiveness of U.S. bonds with high interest rates, but with higher interest rate repayment pressure. On the other hand, at the Federal Reserve's just-concluded interest rate meeting, it was determined that the federal funds rate remained unchanged at 5.25% to 5.5%, which means that the US financial war will continue to grit its teeth and fight until it reaches the "key target". Under the dual attack of U.S. Treasury bonds and the benchmark interest rate of the U.S. dollar, the Biden administration's fiscal deficit will further increase, and the Fed's life will be more difficult.
The data shows that the U.S. economy is facing a double dilemma, the U.S. debt is more threatening than the fiscal deficit, and if the Biden administration is unable to make ends meet and pay interest on the debt on time, there will be a debt default, and the credit of the United States will collapse, and even a global financial crisis cannot be ruled out. U.S. business people have issued a warning about this, and recently the U.S. new energy vehicle giant Elon Musk warned that if the U.S. cannot solve the huge debt problem, the dollar will become "worthless". Warren Buffett is equally worried, emphasizing that inflation and the future value of the dollar are threatening the entire system, and expressing concern about the prospects of the US fiscal deficit. Warren Buffett's remarks can be described as a stone that has stirred up a thousand waves, and if the United States cannot solve its domestic economic problems, it will bring certain challenges to the international economic order.
Not long ago, U.S. Treasury Secretary Janet Yellen and Secretary of State Antony Blinken visited China to put pressure on China on China's selling of U.S. bonds and "overcapacity". At the same time, under China's financial policy, the outflow of domestic capital is limited to a certain extent, and it is difficult to "harvest" Chinese capital by raising interest rates by raising interest rates.
The United States then turned the spearhead to Asia, after the Federal Reserve released the news of continuing to raise interest rates, Asian currencies such as the yen and the South Korean won depreciated one after another, and Wall Street capital took the opportunity to enter the market and buy the assets of Japan and South Korea. U.S. President Joe Biden also appeared on the stage, claiming that the poor economic performance of countries such as India and Japan is due to their xenophobia. The implication is that they want to let Japan, India and other Asian countries open their financial doors to the richest of Wall Street in the United States.
With the size of Japan and South Korea and other countries, it is difficult to fill the huge gap in US debt and the cost pressure of US interest rate hikes, and the ultimate goal of the US side is still China, but under China's strict defense, the US plot has not succeeded, and the RMB has only changed slightly. In this situation, in addition to increasing gold reserves and reducing US debts, China is also constantly increasing its own oil reserves and grain reserves, and gold, oil, and grain are strategic materials.