Big sell off! China and Japan jointly reduce their holdings of US debt, the US dollar "Ponzi scheme" is unsustainable

time:2023-01-30 05:40:39source:chakarski.com author:Aviation stock
Big sell off! China and Japan jointly reduce their holdings of US debt, the US dollar "Ponzi scheme" is unsustainable

Recently, the data on the holdings of U.S. bonds by various countries came out, and we continued to sell. For the first time, the holding of U.S. bonds was less than US$1 trillion, and the number one holder of U.S. bonds, Japan, also reduced its holdings of U.S. bonds. The U.S. dollar and U.S. treasury bonds are a Ponzi scheme, but the situation in China and Japan is different: 1. China has been strategically reducing its holdings of U.S. treasury bonds for a long time. It was once the largest holder of U.S. debt, and Japan has overtaken it around 2020. In the past, we had too much foreign exchange reserves and no good investment channels, so we bought U.S. bonds without thinking. But now our foreign exchange reserves have begun to diversify, and the proportion of gold and non-US currencies in the basket of currencies has increased. Of course, this is more of a strategic consideration, and China's foreign exchange reserves, after 2017, have remained at around 3 trillion for five years, and there is no more food and grass. 2. Japan is more market-oriented. The recent decline in the holdings of Chinese and Japanese government bonds is mainly due to marketization. Since the beginning of this year, as the United States entered a cycle of interest rate hikes, the yields of U.S. Treasury bonds have soared, and U.S. Treasury bonds have basically ended a 20-year bull market, and prices have continued to fall. In this case, it is normal for investors to sell U.S. Treasuries. At present, the US national debt has exceeded 30 trillion US dollars. Since 2008, it has never been reduced from a month-on-month period. However, after all, the United States is still very strong. When will this scam be exposed, it belongs to my "Lifetime" series. The good news is that this year Russia had a "ruble uprising", which bound energy exports to the ruble and successfully appreciated counter-cyclically, which was considered a partial break of the dollar's hegemony. The last one to do this was Iraq, but unfortunately, its military strength was not enough. As a result, Saddam was put on the streetlight by the United States. Russia this time, let us see hope, China should do everything!
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