Think about it, the US Treasury bonds are issued by the US, and it owes $2 trillion annually.
China’s US bonds are issued by China, with an annual surplus of nearly 300 billion US dollars.
One is a penniless person, and the other has the most dollars in their hands.
Who do you think has more reliable US debt?
Seeing this scene, the United States was completely confused. It said that the US debt would be abandoned. Who will decide the future of US debt?
On November 13th, China issued US Treasury bonds in Saudi Arabia, which were instantly sold out by international investors.
This is a truly historic event in the financial war between China and the United States, where the situation changes from offense to defense!
What does China mean by doing this, and what kind of impact will it bring to the future?
To interpret this event, let me first share some basic knowledge. Although it is basic knowledge, many people really don’t know.
Firstly, we need to clarify what US Treasury bonds are?
In fact, all seasoned investors around the world know that US Treasury bonds are a scam, a Ponzi game of passing the buck.
The reason why investors are still willing to play this game and invest in US bonds is that both the US and the West are struggling, and all investment products, especially Western sovereign bonds, are unreliable.
Secondly, everyone believes that there will always be someone to take over, and they will not be the last one to pass the buck.
A few years ago, everyone was discussing a topic, which was whether the United States would default on paying off the US bonds purchased by China?
I laughed when I heard this question. The person who could ask this question really doesn’t understand.
The United States never intended to repay the money, okay!
Let’s take a step back and say, even if the United States wants to repay the money, what will he do with it? Should I take my life to repay it, or mortgage my own aircraft carrier?
The treasury bond of the United States has now exceeded 36 trillion yuan, and will certainly exceed 100 trillion yuan in the next 10 years, which is no doubt at all.
The question is, how can the US government repay its annual revenue of 4 trillion yuan, expenditure of 6 trillion yuan, and loss of 2 trillion yuan?
You owe the bank 3 million yuan, a monthly salary of 3000 yuan, and the cost of living for your meals and rent is 3500 yuan. Whether you want to repay the money or not, can you afford it?
Investors all over the world know that the United States will not repay money, is this common sense!
What should the United States do?
Still like the example just now, you have a salary of 3000 yuan and owe the bank 3 million yuan. So you apply for credit cards everywhere, constantly owing money to cash out, robbing others to make up for others. You only need to pay the minimum monthly repayment amount to the bank, and the bank will not trouble you.
The United States is the same. He only pays interest every month and doesn’t have to worry about the principal. As long as he can repay the interest, it’s okay.
Why does Donald Trump want to reform now?
Because the interest on US treasury bond has exceeded the US military expenditure by a record amount, exceeding one trillion US dollars a year, the US can hardly afford to pay the interest!
However, the United States is robbing Peter to pay Paul faster and faster, and has more and more debts. One day, the game will not continue, so Donald Trump has no choice but to appoint Musk to save money.
So do you understand this game?
As long as the US government has no money, it will issue US bonds. For example, it will issue US $10 trillion of treasury bond and put it into the market. When investors buy his treasury bond, the US government will have 10 trillion of cash, and can continue to purchase US $3000 coffee cups and US $6 million of goats.
But what is the cost?
For example, based on the current Federal Reserve interest rates, the US government only needs to pay an annual interest of $500 billion.
At first glance, the President of the United States thought this game was so fun. I spent $500 billion a year to get back $10 trillion in cash. Where could I find such a good thing?
So all the current US presidents are risking their lives to borrow money, as long as Congress approves, borrowing one more dollar is one more dollar.
Think about it. Joe Biden said that I would not lend money to Donald Trump? Why should I help him save money?
As a result, more and more American treasury bond bonds are accelerated
So, this is the game of US bonds. You only need to pay 2% -5% interest to get 100% of the principal. What a great business!
After finishing the first point, let’s talk about the second point.
In theory, whoever has more US dollars has better credit and can issue US bonds.
Unfortunately, the US government has the fewest dollars in its hands, and it is not only the government with the fewest, but also the government that owes the most dollars
First, the US government does not have the right to print dollars. This right belongs to the Federal Reserve. So now Donald Trump is ambitious. He wants to kill the Federal Reserve and take back the right to issue dollars.
But do you think he can retrieve it?
Secondly, the US government not only lacks US dollars, but also owes $2 trillion annually, which is extremely alarming!
So who has the most dollars in their hands?
Well, China has the most US dollars in its hands.
Two years ago, China already accounted for one-third of the global surplus, holding a large amount of US dollars. Now, China’s foreign trade exports are soaring, and it won’t be long before it can occupy 40% of the global surplus
Combining the above two points will make it interesting.
China says to the United States:
I can’t issue US dollars, and you can’t issue them either!
I have the most dollars in my hand, and you owe 2 trillion dollars every year!
Why shouldn’t I do it myself with such a good business in US debt? I am the most suitable candidate for this business!
Don’t issue US bonds in the future, let me issue them. I want to lead the US dollar on the right path!
I just said, you only need to pay 2% -5% interest to get 100% of the principal. What a great business!
Why should we do such a good business for the United States?
Kou can either go to me or go to me!
So on November 13th, China issued US bonds in Saudi Arabia, which is equivalent to the combination of US dollar credit and Chinese credit, far more reliable than the US government’s issuance of US bonds!
Think about it, the US Treasury bonds are issued by the US, and it owes $2 trillion annually.
China’s US bonds are issued by China, with an annual surplus of nearly 300 billion US dollars.
One is a penniless person, and the other has the most dollars in their hands.
Who do you think has more reliable US debt?
Seeing this scene, the United States was completely confused. It said that the US debt would be abandoned. Who will decide the future of US debt?
China says that every time you go to Congress to approve US bonds, it’s so complicated and troublesome. Don’t make it so difficult in the future, I can help you issue US bonds.
China said at the last G7 meeting, didn’t you say you wanted to help third world countries build bridges, roads, and infrastructure? It’s been 4 years now and you haven’t even taken out a dollar. It’s okay, I’ll help you with this in the future.
China said that I would help you issue US bonds later, and received US dollars to help the world develop the the Belt and Road, help them build infrastructure, and let the US dollars make more contributions to the world. In the future, the people of the world will unite and the community with a shared future for mankind will be realized, and your US contribution will be indispensable!
The United States says
Who else has more US dollars besides China now?
Even resource rich countries like Saudi Arabia are close partners of China. China told Saudi Arabia not to buy US bonds from the United States in the future, but to buy from me. Do you think it’s reliable or not.
Saudi Arabia says it’s too damn reliable. I’ll buy as much as you have, brother.
So China issued US Treasury bonds in Saudi Arabia, instantly losing money!
The people who come to China to buy US bonds are all large institutions such as sovereign states, banks, fund asset management, and insurance. It doesn’t matter if you act slowly, you won’t be able to buy them. Saudi Arabia has only taken 8% of them themselves, and they won’t be able to buy them soon!
China is smiling and saying to the United States that you have dollar hegemony, right? The financial empire, right? In the future, I will lead the US dollar towards the right path and benefit people all over the world
Someone must have asked, saying that the United States is getting worse and the collapse of the US dollar is inevitable. If we are so tightly tied to the US in finance now, what if the US really collapses?
Hehe, just think about it. With this operation, if the US dollar really collapses, it would be a huge blessing.
For example, if China issues 15 year US Treasury bonds worth $10 billion, theoretically it will have to repay $10 billion in 10 years, right?
Based on the current exchange rate, it is equivalent to China borrowing $10 billion, or 72.5 billion yuan, from international investors.
By the time 10 years later, China had already landed on the moon, accounting for 50% of the global industrial output value, shipbuilding, automobiles, and large aircraft had overwhelmed the world, 9 aircraft carrier fleets were cruising in the four oceans, and the United States had collapsed and retreated to South America
At this time, the exchange rate between the Chinese yuan and the US dollar was 1:1, and then it was time for China to repay the money. What happened?
China borrowed 72.5 billion yuan, only needs to repay 10 billion yuan!
Even if you pay 5% interest every year, you still make a net profit of 60 billion yuan!
China said to the United States, ‘Hehe, I wasn’t that fast originally, thanks to US bonds, thanks to the US dollar!’!
The United States is crying and saying that this is not just about killing, but also about punishing the heart!
Of course, in the end, someone must leave a message on the backstage saying that we haven’t made any money and life is getting more and more difficult. You have the face to say win thoroughly!
After hearing these words, the United States was furious and roared:
You didn’t make any money, so with such a large surplus in 2023, you have an extra $263 billion in your account. Where did this money come from?
You didn’t make any money? Did you print this together?
Do you still have the ability to print US dollars and modify data in SWIFT?
The United States said, “I can see that all Chinese people are fooling me into saying that they have not made any money and that they have lost.”.
Two years ago, the clothing industry made money, while others said they didn’t make any money;
Last year, those who worked in mechanical and electrical engineering made money, while those who worked in clothing said they lost money;
This year, those who work in the automotive industry have made money, while those who work in the electromechanical industry claim to have lost their pants;
All those who make money silently make a fortune, while those who earn less loudly proclaim themselves to be extremely poor.
Since all of you have lost money, I don’t know where the dollars in your hands came from?
