The United States owed China money, to China hit the debt, now China let the United States pay back the money, the United States can't afford, China sold this debt to other countries, this country owed the United States money, in the form of yuan bought the United States debt in China's hands, and then took this debt to offset the money he owed the United States.
To put it bluntly, this is a reason to borrow money from the neighbors of the neighborhood, the United States owes a large amount of money to China, and then the Chinese let it back, it is not so much in the pocket, China merely sold this debt to other countries, coincidentally this country is also owed U.S. money, it bought the debt with the RMB, directly took the debt to the debt of the United States, listen to it? do not rush, we broke up and tear down.
Let's give you an easy-to-understand example first, and you will understand the ropes. Everyone in Saudi Arabia knows that they have mines (oil) at home and hold a lot of dollars in their hands. The money is so much that they have to find land to put it. In the past, many countries loved to lend dollars to the United States to buy U.S. bonds, but Saudi Arabia dares not now. Why?
Afraid of the U.S. out of the shit, at the time the money will not come back, and Saudi Arabia is not lacking in soybeans, even if you want to invest something, do not commit to soybeans.
But China is different, China issued that kind of credentials linked to US debt, behind which is the Chinese government's backbook, this credibility is higher, and when Saudi Arabia looks at lending the dollar to China, it can not only be safe, but also have stable gains, that is sure a hundred reassured.
So Saudi Arabia borrowed the dollar to China, and after China got those dollars, it didn’t go away and turned to buy Argentine and Brazilian soybeans.
Don't underestimate this operation. Argentina and Brazil are now eager to ask for foreign exchange in US dollars. Many of the debts of these two countries are about to mature. If they cannot afford to repay them in US dollars, they will be in big trouble.
And they also need to import some urgently needed supplies, these also have to settle in dollars, China at this time to buy their soybeans in dollars, just solved their burning hurry, they have dollars, both can expire the US debt, but can buy urgently needed supplies, simply a couple.
In fact, there is also a key point here, the Chinese dollar in the hand is really too much, before China and other countries do trade, mostly with the dollar settlement, the longer the time, the more the dollar in the hand will accumulate.
But on the U.S. side, China wants to buy something useful, such as some advanced technology, high-end equipment, the U.S. either says not to sell, or sets various thresholds, in any case it is not to let China successfully buy it.
This leads to the fact that the Chinese dollar in the hand is a little “not spent out” meaning, never let those dollars remain in the account, right?
Later, China changed its thinking. Now, its trade with many countries is basically settled in RMB. As a result, the influence of RMB is increasing.
What about the extra dollars in hand? China has thought of a way to release these dollars as something similar to bonds. Simply put, it lends out the dollars and then exchanges them for more RMB. In this way, it not only revitalizes the dollars in its hands, but also increases the circulation of RMB, killing two birds with one stone.
Let's go back to the IOU at the beginning. In fact, it's similar to this truth. China has the IOU (U.S. debt) of the United States. If the United States can't afford it, China will sell the IOU to other countries that owe money to the United States.
After the country bought the debt with RMB, took the debt and went to the United States and said, I owe you the money, and used this debt, the United States could not say no, after all, this debt was it itself.
In this way, China has not only recovered the money (in exchange for the yuan), but also no longer looked at the debt of the United States, other countries have also solved the problem of owning the money of the United States, the whole process down, everyone takes what is needed.
Some people may ask, what good will this do to China? First of all, the U.S. debt in China's hands was originally facing the risk that the United States would not be able to pay. By selling it to other countries, this risk was transferred out.
Secondly, exchanging more RMB for the dollar, can promote the international use of the RMB, so that more countries recognize the RMB, which is very beneficial for the internationalization of the RMB.
And cooperation with the countries of Saudi Arabia, Argentina and Brazil will also deepen economic ties with each other, and trade will be smoother in the future.
The article is just a personal opinion, everyone has different opinions on this matter, or what else is not understood, can be discussed in the commentary area, and we exchange and exchange together.
To put it bluntly, this is a reason to borrow money from the neighbors of the neighborhood, the United States owes a large amount of money to China, and then the Chinese let it back, it is not so much in the pocket, China merely sold this debt to other countries, coincidentally this country is also owed U.S. money, it bought the debt with the RMB, directly took the debt to the debt of the United States, listen to it? do not rush, we broke up and tear down.
Let's give you an easy-to-understand example first, and you will understand the ropes. Everyone in Saudi Arabia knows that they have mines (oil) at home and hold a lot of dollars in their hands. The money is so much that they have to find land to put it. In the past, many countries loved to lend dollars to the United States to buy U.S. bonds, but Saudi Arabia dares not now. Why?
Afraid of the U.S. out of the shit, at the time the money will not come back, and Saudi Arabia is not lacking in soybeans, even if you want to invest something, do not commit to soybeans.
But China is different, China issued that kind of credentials linked to US debt, behind which is the Chinese government's backbook, this credibility is higher, and when Saudi Arabia looks at lending the dollar to China, it can not only be safe, but also have stable gains, that is sure a hundred reassured.
So Saudi Arabia borrowed the dollar to China, and after China got those dollars, it didn’t go away and turned to buy Argentine and Brazilian soybeans.
Don't underestimate this operation. Argentina and Brazil are now eager to ask for foreign exchange in US dollars. Many of the debts of these two countries are about to mature. If they cannot afford to repay them in US dollars, they will be in big trouble.
And they also need to import some urgently needed supplies, these also have to settle in dollars, China at this time to buy their soybeans in dollars, just solved their burning hurry, they have dollars, both can expire the US debt, but can buy urgently needed supplies, simply a couple.
In fact, there is also a key point here, the Chinese dollar in the hand is really too much, before China and other countries do trade, mostly with the dollar settlement, the longer the time, the more the dollar in the hand will accumulate.
But on the U.S. side, China wants to buy something useful, such as some advanced technology, high-end equipment, the U.S. either says not to sell, or sets various thresholds, in any case it is not to let China successfully buy it.
This leads to the fact that the Chinese dollar in the hand is a little “not spent out” meaning, never let those dollars remain in the account, right?
Later, China changed its thinking. Now, its trade with many countries is basically settled in RMB. As a result, the influence of RMB is increasing.
What about the extra dollars in hand? China has thought of a way to release these dollars as something similar to bonds. Simply put, it lends out the dollars and then exchanges them for more RMB. In this way, it not only revitalizes the dollars in its hands, but also increases the circulation of RMB, killing two birds with one stone.
Let's go back to the IOU at the beginning. In fact, it's similar to this truth. China has the IOU (U.S. debt) of the United States. If the United States can't afford it, China will sell the IOU to other countries that owe money to the United States.
After the country bought the debt with RMB, took the debt and went to the United States and said, I owe you the money, and used this debt, the United States could not say no, after all, this debt was it itself.
In this way, China has not only recovered the money (in exchange for the yuan), but also no longer looked at the debt of the United States, other countries have also solved the problem of owning the money of the United States, the whole process down, everyone takes what is needed.
Some people may ask, what good will this do to China? First of all, the U.S. debt in China's hands was originally facing the risk that the United States would not be able to pay. By selling it to other countries, this risk was transferred out.
Secondly, exchanging more RMB for the dollar, can promote the international use of the RMB, so that more countries recognize the RMB, which is very beneficial for the internationalization of the RMB.
And cooperation with the countries of Saudi Arabia, Argentina and Brazil will also deepen economic ties with each other, and trade will be smoother in the future.
The article is just a personal opinion, everyone has different opinions on this matter, or what else is not understood, can be discussed in the commentary area, and we exchange and exchange together.