If the dollar depreciates, China's wealth will shrink.
Since the US dollar is an international reserve currency, the United States has the right to print money. Such a huge amount of US dollar investment will obviously put China's foreign exchange reserves at great risk: whether investors lose confidence in US bonds or the US government issues a large number of new bonds to solve financial problems, the value of bonds will be "diluted", thus shrinking China's wealth; China, the largest creditor, will naturally bear the brunt once the United States offers a tried-and-tested "printing money law" and artificially devalues the dollar to pass on its own economic and financial crisis.
The United States is still issuing new debts.
What is even more worrying is that this trend is still expanding: on the one hand, the United States continues to issue new bonds to raise funds to rescue the market. According to relevant data, in 2009, the scale of bond issuance in the United States will reach 2.56 trillion US dollars, in 2000 it will reach 1. 1.4 trillion US dollars, and the scale of bond issuance before September this year will be about 700 billion US dollars. On the other hand, although China keeps complaining, it keeps increasing its holdings of national debt, while the United States is complaining that it has borrowed too much money from China, and at the same time, it keeps sending important personnel to lobby China to buy more American national debt. From Hillary Clinton to Pelosi to Geithner, they had different attitudes and positions towards China before, but this time they came to China and did not repeat the same words in a gentle tone: buy more US Treasury bonds, which is the safest and safest. ?
American debt is neither safe nor affordable.
I'm afraid US Treasury bonds are neither a safe investment nor an affordable investment. This is not to echo the argument of "conspiracy theorists", that is, the United States deliberately wants to take the world wealth circle as its own, but to infer from the facts: the accumulated debt of the US government is 1 1 trillion dollars, and there are 400-5 trillion extra-budgetary debts, with an average debt of18,000 dollars per American (including newborn babies). So affordable? The yield of US Treasury bonds has been falling continuously, falling by 3.08% this year 1 month for the first time in five years. The yield of 10-year long-term treasury bonds once fell to 2.5%, even lower than domestic ordinary deposits.