According to the existing way of the United States as the world police, more and more countries will not buy US Treasury bonds. The reason is that the United States, as a world policeman, puts American interests first and handles world disputes. There are many ways to help, but few ways to help.

Now some countries have reserved euros and RMB. A decentralized reserve currency has been created.

It is known to all countries in the world that American wool has lost to Japan and other countries. I believe that the leaders of that country are unwilling to lose their hair, so all countries will take precautions and gradually transfer the reserve currency. It will come sooner or later.

The United States must change its existing policies to prevent the internationalization of the euro and the renminbi. According to China's foreign policy, RMB will be internationalized.

This question is like: What will happen to the State Grid if we don't use its electricity? We don't even use water from the water company. What will happen to the water company We don't even use cell phones. What will happen to several major telecom companies? What will happen to the farmers in the world if we stop eating food? ……

America is really annoying sometimes, but now it is a reality. We don't have to buy American debt, so please tell me, are our huge foreign exchange reserves stored in warehouses and allowed to depreciate, or is there a better way to increase the value or even guarantee the quality?

We lend our hard-earned foreign exchange to Americans, who live a happy life. It's fucking unfair! But the reality is cruel! If we don't lend our foreign exchange reserves to the United States, Americans will have nowhere to borrow money except to preserve their value. Where are we going to get money and squander it like a drunken fool? Is it necessary to sell products made in China in large quantities to Africa and South America without money? Or old Europe with shrinking money bags? Japan? Korea? Come on, these guys sell things to others for a living.

In addition, strategically speaking, our interests are kidnapped with the interests of the United States, just like on the battlefield, in order to be blown up by the enemy's superior artillery, we simply rushed up and mixed with the enemy's team. This is also the helpless choice of the weak side!

The United States is used to being carefree and can't stand living a hard life. If you continue to be carefree, you will be unable to make ends meet. The only choice is to live on money and borrow money!

However, it is the national credibility of the United States that endorses these debts. Fame is very dangerous. Once you break your word, it will be like a domino, and the cornerstone supporting the American empire will collapse!

Does the United States want to "burn everything"? If you don't pay your debts and play the game of dollar depreciation, you are nothing more than obliterating your country's reputation.

Therefore, this is a tacit game. Because there is no way, looking at the world, the biggest benefit of massive foreign exchange is lending to the United States. Practically speaking, the income is still good.

The erroneous remarks of some economists have caused people's understanding of the economy to deviate. More than 80% of U.S. Treasury bonds are purchased by the United States itself, and there is no difference between U.S. Treasury bonds and ours. Therefore, it is useless for countries around the world not to buy US Treasury bonds.

The opening of the United States to the global economy and the sales of goods from all over the world have increased the trade deficit of the United States. In order to solve the trade deficit, the US government must issue national bonds, and countries can maintain the current rules of the trading system by purchasing US bonds.

Once everyone does not buy US Treasury bonds, then the United States must have a trade balance and must carry out trade barriers.

Do you think the US government is willing to issue bonds? Willing to be in debt? The answer is definitely no.

This involves the essential difference between the American global economy and the British global economy.

Britain advocates dumping goods all over the world to get excess profits from the trade surplus, and then Britain buys the national debt of other countries, making it a debtor country.

The American model is just the opposite, that is, let other countries buy US Treasury bonds and let other countries become creditor countries.

If all countries in the world don't buy American debt, America's hegemonic position in the world will come to an end. American debt plays a vital role in the American economy, so don't underestimate its role. In addition to its strong military strength, the United States also has economic, political and diplomatic support to dominate the world. The existence of American debt is an indispensable part of the dollar world monetary system, and the status of the dollar affects American economy, politics, diplomacy and other aspects.

The role of American debt

Through the dollar oil system, the dollar has become the most important currency in the world. This system has supported the dominance of the US dollar from 1973 to the present for nearly half a century. It is no accident that the dollar can dominate the world currency status for more than half a century. In our opinion, in the past half century, there would be no oil without dollars. If countries all over the world want to buy oil, they must first get dollars from the United States. The dollar oil system is to export dollars to foreign countries. However, if the dollar can become the number one currency, it must ensure the stability of its purchasing power, and the American debt system was born. Dollar oil is exported to the dollar, and dollar debt returns to the dollar internally, forming a dollar closed loop. In this way, the Fed can adjust its monetary policy in time to ensure the stability of the dollar.

Does American debt play a big role? Very large, if all countries in the world don't buy dollars, there will be problems with the dollar return system. A system that only exports and does not return will eventually lead to the depreciation of the US dollar and lose its position in the world. In recent years, the United States has taken advantage of the dominance of the dollar, but it has done a lot of things. For example, it always coerces other countries to achieve their goals by kicking out the dollar system; If you hit tariff war and don't do business with you, you won't get dollars. Without dollars, there would be no oil. Therefore, the dollar is not only the world currency, but also an invisible gun in the hands of the United States, and many people have stumbled in this regard.

What would happen if all countries in the world stopped buying American debt?

We can assume that all countries in the world don't buy American debt. What does this mean? It means that the dollar oil system has been broken, and the system of controlling the world by controlling energy in the United States has gone bankrupt. For example, why does our country dare to throw away American debt now? Because oil can be bought in RMB, what do we do with so many dollars?

The shrinking of the dollar oil system represents the decline of the dollar status, and the decline of the dollar status. It is useless for the United States to threaten other countries with the dollar system in the future, and its economy, politics and diplomacy will be affected. According to statistics, a quarter of US GDP income comes from the world status of the US dollar. It is conceivable that the dollar has a great influence on American world hegemony.

Summary: American debt plays a vital role in the dollar system. If all countries in the world stop buying American debt, it will represent the decline of the dollar's world status and the United States will go downhill.

In fact, most countries in the world get rich by America. Including our past four little dragons in Asia! Even now, it is still. The former Soviet Union and now Russia, under the siege of western forces led by the United States, the Soviet Union disintegrated! Russia has regressed. Now because of the rise of the people of China! The power of China people! The pattern of the world has changed. Is it as hot as Americans used to be? It's China fever now! Now is the birth of a new model! That is the Western camp headed by the United States and the China camp headed by China. Now the east wind overwhelms the west wind. The development of today's world is inseparable from the two engines of the United States and China. How many years have American products led the world? Our China has the fastest development speed and the most comprehensive products in the world. Then the high-speed rail will be awesome! All countries in the world live like the old white surname? Whose product is good! Whose goods do you want? This is the rules of world trade, the rules of the game?

A year ago in June 15 and 20 18, the data disclosed by the Federal Reserve showed that foreign governments holding US Treasury bonds reduced their holdings in April respectively. Among them are China and Japanese;

In April, these two countries reduced their holdings of US Treasury bonds by US$ 5.8 billion and US$ 654.38+0.23 billion respectively. In addition, the governments of Britain, India, Canada, South Korea, Mexico, Switzerland and Ireland have also joined the ranks of reducing their holdings.

"Reducing US Treasury bonds" will become the new normal that the Federal Reserve and the US government have to face.

There are two types of holders of US Treasury bonds; One is the "public", that is, American and foreign investors; The second is foreign governments. According to the Federal Reserve, foreign governments hold 25% of US Treasury bonds.

To put it bluntly, the selling of US Treasury bonds by foreign governments will definitely have an impact on the US economy; But how big is this impact? Will all these foreign governments be sold? Will America retaliate? It is also difficult to evaluate.

Let's look at the "public" holders. Profit-seeking, capital is profitable. These people will not throw out the unexpired US Treasury bonds for political reasons, just like conflicts between countries. Investment without return is not in line with investors' psychology.

Finally, even if all US Treasury bonds are sold and the principal is redeemed, the money will still be US dollars; It can still be controlled by the fiscal policy of the United States-for example, the "liquidity" of the dollar is affected, and the United States can carry out "quantitative easing"-printing dollars at full speed.

If too many dollars enter the circulation field, the dollars in the hands of the government and investors (the principal of buying US Treasury bonds) will still depreciate sharply; Therefore, countries with foreign exchange surpluses can only continue to buy US Treasury bonds to preserve their value.

This is like a routine-only the US dollar is still the world's major ally settlement and foreign exchange reserve currency, which forces the governments or investors of countries that have earned US dollars to return them to support the economic development of the United States.

Therefore, selling US Treasury bonds is actually a paradox-the status and monopoly of the US dollar will not be broken, and selling US Treasury bonds is tantamount to quenching thirst by drinking poison-throwing away the US dollar and replacing it with what? Euro or pound or yen?

For the United States, discussions always focus on assets and liabilities.

Liabilities: 1. The dollar representing purchasing power is the debt of the United States; 2. American debt, linked to the dollar and national status, is a means of foreign exchange reserves.

Assets: 1. Mortgage bonds, which are mortgaged to the government to obtain financing funds; 2. Buy bonds from other countries, balance the foreign exchange market and improve the national status.

What are the consequences of selling American debt in the world at present? On the one hand, the number of dollars held by other countries has decreased, which has shaken the hegemony of the dollar and endangered the global status of the United States; On the other hand, selling US debt accelerated the return of the US dollar, which led to the expectation of the depreciation of the US dollar.

Therefore, the wave of selling American debt has seriously reduced the economic status of the United States, which is manifested as follows: first, countries no longer hold American debt, showing signs of isolating the United States and weakening its status; Second, selling American debt may make it unbearable for the dollar to return, thus devaluing the dollar and affecting its influence. Third, selling American debt has reduced the yield of American debt, and countries are cashing out crazily, which may lead to a debt crisis in the United States. Fourth, US bond yields are often used as risk-free yields. The yield of American debt has decreased, and the enthusiasm for investment has subsided, which has put pressure on the American economy.

This situation does not exist objectively. People are different, and flowers are red. Countries always think and deal with problems on the basis of their own interests, and it is difficult to form a joint force. Some time ago, Japan was throwing American debt, and in the past two months, it bought American debt inexplicably. Isn't this very telling?

If, as you said, all countries don't buy American debt, it will be bought by the big American consortium, Wall Street or the American people. After all, these are the main forces to buy American debt.

Of course, if Americans stop buying, there will be the following consequences: the debt of the United States cannot be paid off. Never mind the interest, the principal can't be recovered. Because the U.S. government has always bitten more lice than less, and the account is more worrying. Do the business that Zhang San lent to Li Si. I'm not taking any risks. Without new buyers, American debt will rot in the hands of old buyers. Who told you to be greedy when delivering a parcel? In addition, the credibility of the United States has been completely lost, and old accounts can be relied on, and new accounts are difficult to mention. The US government's capital chain will be broken. Everyone knows that economy is the foundation. Without money, everything will stop and the federal government will have to close.

Of course, this situation is almost impossible. Unless the United States faces a decisive battle, the outcome is unpredictable and life and death are uncertain. By that time, everyone is concerned about their own interests and scrambling to sell American debt for gold. This is what everyone will push. Whether to die without a fight is unknown. As for me, this person is in a bad mood and always hopes that this day will come early, because I am angry when I see Americans cock themselves.

The purchase of American debt by countries all over the world means that countries all over the world lend money to the United States. Of the $22 trillion in national debt, $6 trillion is held by overseas countries. If countries around the world don't buy American debt, it means that the United States can't borrow money from the international community. The impact on the United States is to reduce the economic development of the United States.

If the American government can't borrow money, there will be a gap in expenditure, so it is necessary to increase taxes. Increasing taxes means that the income of the American people will decrease, and the American economy is driven by consumption. The reduction of American people's income means the reduction of consumption power, so that the motive force of American economic growth will be weakened and economic growth will decline.

However, the United States can't borrow money internationally, which has little impact on the United States. The United States is still a developed country. Only the United States has borrowed a lot of money from the world. Other developed countries mainly issue domestic debts, so people are still developed countries, and China also issues domestic debts, so the economy takes off.

And countries around the world don't buy US Treasury bonds, which will not only affect the United States, but also affect their own economic development. The United States is the largest trade deficit country in the world, and its import scale is huge. Many countries get a lot of dollars from the United States, and they return to the United States by buying American treasury bonds, and the United States imports goods again. This is a cycle, and both sides benefit.

If other countries stop buying US Treasury bonds, the United States will not be able to increase consumption, which will naturally affect the scale of imports. In this way, other countries' exports to the United States will also drop sharply, and they will not make a lot of dollars. Naturally, there will be no funds to buy US Treasury bonds. In other words, the circulation of this commodity and the dollar cannot be interrupted, and once it is interrupted, it cannot be played.

The status of the largest economy in the United States will not be shaken because other countries do not buy government bonds. Net export is one of the driving forces of economic development. The United States reduces imports and deficits, which belongs to gdp plus projects, while other countries reduce exports and surpluses, which belongs to gdp minus projects, so other countries' gdp decreases even more.

How can selling American debt bring the dollar back? I don't understand.

According to my understanding, everyone is selling American debt, and the United States should take over. Of course, you have an obligation to recover your bonds. As a result, bonds flowed back to the United States, and dollars did not flow back, but flowed out. How can the United States still pay so much money? In addition to breach of contract, only the ticket was printed and finally collapsed. Collapse should be the only result, and breach of contract is the inevitable destination.