Why can't China sell all its U.S. debt at once? Let's just put it this way, if China dares to sell it all today, China and the United States may go to war tomorrow. In the final analysis, the U.S. debt in China's hands is no longer an ordinary bond, but more like a "financial nuclear button" in its hand.
Without a doubt, China has thrown out all of the U.S. debt at once, the root is not the fear of the U.S. war, but this is not the logic of "throwing bombs" from the root, the U.S. debt in the hand is more like a "balancer", really rushing to throw out, not only can not smash others, but also may hurt themselves in trouble.
Let's first talk about the saying that "you throw U.S. debt and go to war". In fact, it's a bit too flattering to the United States. If you really want to be serious, ask him what to fight with? The United States today is not the same as it did decades ago.
You see his recent military spending look a lot, but a bunch of hole in the country, inflation just pressed down a little and there was a rise in the head, the manufacturing industry screamed back for years, the Detroit factory is still not full of loads.
Not to mention the Navy, the Seventh Fleet has a backlog of destroyer maintenance. There have been previous reports that some ship parts have to be removed from retired ships to make up for the number.
If we really want to start a war with China, let alone our hard weapons such as hypersonic weapons and anti-ship missiles, let alone logistics supplies. Will his base in the Asia-Pacific be enough to carry it? Do allies dare to follow?
Looking at China again, we are not like the Hussein of Iran who relies on improvised weapons. From warships to fighter jets, from independent chip production capacity to complete industrial chains, we all have systematic capabilities that can make our own blood.
Several times before the South China Sea, the American aircraft carrier came to shake, our warships directly accompanied flight, electronic interference follow, he did not dare to really how, after all, really do, we "do not hit the first shot, but never let the second shot" is not to say, at the time he is in the Asia-Pacific base, the global trade routes are affected, which is he wants to end can end?
Let's be honest, just like someone said, "If I reimburse my Tesla, Musk will call me immediately to beg me to show mercy." This sounds a bit ridiculous, but it is true.
The Shanghai super factory accounts for more than half of Tesla's global production capacity, and the Chinese consumers buy away Tesla every year, almost one-third of his global sales, before why did Musk specifically fly to China to talk about cooperation?
This is a logic with U.S. debt, China holds more than one trillion dollars in U.S. debt, not a small number, but really dropped, short-term U.S. debt prices will collapse, the cost of the U.S. government borrowing money (i.e. yield rate) must rise, but the foreign exchange reserves in our hands must also have a place to go.
Now the world can put up so much money, still relatively safe assets, in addition to the U.S. debt there are not a few options, can not always buy gold?
And you look at the recent situation, the United States actually still hopes that China will buy more U.S. debt, after all, the U.S. government deficit is terrifyingly high, each month has to issue new debt borrow money, if China does not buy even if it goes out, he has to find someone else, such as Japan.
But Japan's own government debt accounts for 260% of GDP, where is so much free money?
China has not been idle either. In recent years, it has been slowly adjusting the structure of its foreign exchange reserves, such as buying more gold (China's gold reserves are now almost 2400 tons), or adding some currency bonds from other countries. Instead of throwing out U.S. debt all at once, it will move it little by little to reduce its dependence on U.S. debt without disrupting the market.
After all, it is really messy, our trade and scientific and technological cooperation with the United States is also affected, and we can not lose the long-term balance for a moment.
In fact, in the final analysis, the matter of U.S. debt has never been "who handles who", but both sides are calculating with their own interests. What step do you think is the United States most likely to take first if China really adjusts its U.S. debt holdings?
Should we talk to China about conditions, or should we turn to other countries to put out the fire? Or if you have any thoughts on China's foreign exchange reserves slowly being de-debted to the United States, please come to the comment area to chat.
Without a doubt, China has thrown out all of the U.S. debt at once, the root is not the fear of the U.S. war, but this is not the logic of "throwing bombs" from the root, the U.S. debt in the hand is more like a "balancer", really rushing to throw out, not only can not smash others, but also may hurt themselves in trouble.
Let's first talk about the saying that "you throw U.S. debt and go to war". In fact, it's a bit too flattering to the United States. If you really want to be serious, ask him what to fight with? The United States today is not the same as it did decades ago.
You see his recent military spending look a lot, but a bunch of hole in the country, inflation just pressed down a little and there was a rise in the head, the manufacturing industry screamed back for years, the Detroit factory is still not full of loads.
Not to mention the Navy, the Seventh Fleet has a backlog of destroyer maintenance. There have been previous reports that some ship parts have to be removed from retired ships to make up for the number.
If we really want to start a war with China, let alone our hard weapons such as hypersonic weapons and anti-ship missiles, let alone logistics supplies. Will his base in the Asia-Pacific be enough to carry it? Do allies dare to follow?
Looking at China again, we are not like the Hussein of Iran who relies on improvised weapons. From warships to fighter jets, from independent chip production capacity to complete industrial chains, we all have systematic capabilities that can make our own blood.
Several times before the South China Sea, the American aircraft carrier came to shake, our warships directly accompanied flight, electronic interference follow, he did not dare to really how, after all, really do, we "do not hit the first shot, but never let the second shot" is not to say, at the time he is in the Asia-Pacific base, the global trade routes are affected, which is he wants to end can end?
Let's be honest, just like someone said, "If I reimburse my Tesla, Musk will call me immediately to beg me to show mercy." This sounds a bit ridiculous, but it is true.
The Shanghai super factory accounts for more than half of Tesla's global production capacity, and the Chinese consumers buy away Tesla every year, almost one-third of his global sales, before why did Musk specifically fly to China to talk about cooperation?
This is a logic with U.S. debt, China holds more than one trillion dollars in U.S. debt, not a small number, but really dropped, short-term U.S. debt prices will collapse, the cost of the U.S. government borrowing money (i.e. yield rate) must rise, but the foreign exchange reserves in our hands must also have a place to go.
Now the world can put up so much money, still relatively safe assets, in addition to the U.S. debt there are not a few options, can not always buy gold?
And you look at the recent situation, the United States actually still hopes that China will buy more U.S. debt, after all, the U.S. government deficit is terrifyingly high, each month has to issue new debt borrow money, if China does not buy even if it goes out, he has to find someone else, such as Japan.
But Japan's own government debt accounts for 260% of GDP, where is so much free money?
China has not been idle either. In recent years, it has been slowly adjusting the structure of its foreign exchange reserves, such as buying more gold (China's gold reserves are now almost 2400 tons), or adding some currency bonds from other countries. Instead of throwing out U.S. debt all at once, it will move it little by little to reduce its dependence on U.S. debt without disrupting the market.
After all, it is really messy, our trade and scientific and technological cooperation with the United States is also affected, and we can not lose the long-term balance for a moment.
In fact, in the final analysis, the matter of U.S. debt has never been "who handles who", but both sides are calculating with their own interests. What step do you think is the United States most likely to take first if China really adjusts its U.S. debt holdings?
Should we talk to China about conditions, or should we turn to other countries to put out the fire? Or if you have any thoughts on China's foreign exchange reserves slowly being de-debted to the United States, please come to the comment area to chat.