The United States, for its own interests, has ignited one round after another of currency wars and trade wars, but now the United States itself is in trouble and has become a great opportunity for us to counterattack.
Since the beginning of this year, our country's economic recovery has been strong, with GDP growth in the first quarter far exceeding that of the United States. The decline in export growth in the fourth quarter of last year has also been strongly reversed, with a significant increase in trade surplus.
The trade surplus is increasing, but instead of continuing to buy U.S. debt, we have sold a large amount.
Plus other layouts are working together, we are playing a set of effective combination punches, and the United States can only express helplessness.
01, U.S. debt negotiations end
Some time ago, the negotiations on U.S. debt within the United States were actually a "political game" between the two parties in the United States. Now the farce has finally ended.
Biden has made concessions and promised to make historic spending cuts, which is precisely this point that has laid a significant伏笔 for the future economic trend of the United States.
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The United States has always relied on expansionary spending and continuous issuance of debt to maintain the operation of the economy. If it really starts to gradually reduce spending, the economic power of the United States will be seriously insufficient and will accelerate the slide into a deep recession.
But if it does not reduce spending, it is now impossible to repay even 31.4 trillion, and it will be even more difficult in the future.
In the past, in the international market, U.S. debt has always been called a "risk-free" product, and the U.S. government has maintained the dominance of the dollar through U.S. debt. Therefore, if it is not really desperate, American politicians will not gamble with U.S. debt.02, Selling Off $220 Billion
Will China Continue to Issue More US Debt?
China's economy this year, especially the strong growth in foreign trade exports, has seen our trade surplus further expand in the first four months. In just April, we achieved a doubling of growth, with a cumulative growth rate reaching 56%.
Last year's trade surplus was already high, and this year it continues to expand on a high base, earning us a large amount of foreign exchange through foreign trade.
However, this does not mean that we need to exchange this money for increasingly devalued US debt.
On the contrary, from last year to this year, our surplus has continued to expand, but from last year to now, we have sold off more than $220 billion in US debt in total.
The US government now has to pay $850 billion in national debt interest each year, and US debt remains a "bomb," but when it will explode is still uncertain.
Therefore, China will continue to sell off US debt in the future.
03, Our Combination Punch
In addition to continuously developing the economy, expanding trade, and selling off US debt, we are also continuing to buy gold.After November 2019, China did not disclose the increase in its gold reserves for a long period of time.
However, since the end of last year, the central bank has been gradually updating the amount of gold reserves held every month, and the change in attitude itself is a significant signal.
Combining data from Swiss customs and the World Gold Council, our country's import volume in 2022 was 1,343 tons, while the import volume in 2021 was 821 tons, and the import volume in 2020 was 217 tons.
The renewed attention of investors, including central banks of various countries, to gold is tantamount to announcing to the world that the financial system dominated by the US dollar is undergoing tremendous changes.
People around the world are expected to re-evaluate the role of the US dollar, and by that time, the status of the renminbi may be further enhanced, becoming an important part of a diversified currency structure.