U.S. Treasuries: China and the United States are dangerous sword headache

For a long time, the network has been flooded with a saying. Ie: people's hard-earned money to take to the American government and reluctant to put the country to do the people's livelihood. Send the denomination of the money is to buy U.S. Treasury bonds. A time that claim was popular. Fudge netizens agreed scolding. Great liquidation of the potential of the Chinese government. I have this problem and netizens jointly explore.

1 dollar does not circulate in the country. Not only is the U.S. dollar, and any foreign currency can circulate within a sovereign state.

Foreign exchange to the China Foreign Exchange Authority, put foreign exchange dollars into yuan into the domestic. So the money has been up in the country. Impossible sum of foreign exchange repeatedly exchange investment. If so, printed directly on the yuan. (A four trillion pulling the economy has made China's involvement is not shallow, then a few trillion of foreign exchange into the domestic what happens?)

(Hostile elements to deceive Internet users often get this kind of Internet users that the money can be repeated invested domestic people's livelihood).

Sixth, it can use foreign exchange to buy all kinds of mineral resources as reserves?

China is currently the largest importer of oil and mineral resources. No pricing power, higher prices of purchased products, will undoubtedly increase the domestic inflation. So purchase moderation.

VII, whether the United States will not return our money? (This is the greatest concern of Internet users, I say a few more).

This possibility has not? Can not say no, there is a premise is: the U.S. government, the Fed, the American people are completely crazy.

We know that the U.S. government debt has reached $ 15 trillion. In this inside. Fed holds nearly trillion. The seven trillion held by the American people. The two major buyers of U.S. Treasuries since 2009 are the family and the Federal Reserve of the United States. The largest holder of U.S. Treasuries is the people in the United States, more than foreign investors, the Chinese and other foreign buyers are no longer the main driving force of the U.S. bond market.

When the turmoil in global political, military and economic or financial crisis, U.S. Treasury bonds are the safest haven in the world, must rise in Treasury prices, because a lot of money to flock to U.S. Treasuries since the financial crisis, the United States has a large number of ordinary investors sell stocks transferred to the bond market, they not only rush to buy corporate bonds, also panic buying U.S. government bonds, U.S. Treasury rates all the way down, and bond prices soaring.

This shows that: China more than 10,000 billion of foreign debt with the U.S. debt than simply nothing. He was not even a year deficit complement not repudiate China's debt. However, be aware that the Treasury credit system is the core of the international financial system in the United States, deadbeat consequences:

$ 1. Disrupt the credit system, will not speak of the collapse, only debt price devaluation, the nearly trillion dollars the Fed creditors and 7 trillion loss of the American public creditors N times larger than China's loss.

2 If the credit collapse of the national debt is no longer in circulation, and that is the United States to borrow money, the U.S. government may soon go bankrupt.

3 led to the Sino-US trading comprehensive interrupt 500 billion economic mobility categorically interrupt, it would have been the United States hit by the financial imbalances, closed down and unemployment will be swept throughout the United States, the United States is picking sesame seeds and watermelon.

4, it was said that the United States only to repudiate the Chinese government bonds, does not know that you repudiate the largest creditor of the debt over the world who will trust you, if the whole world panic throwing U.S. debt, the United States be able to stand? ? American bet? ? ?

5 days the amount of U.S. investment in China. Its value is far more than that over one trillion U.S. debt. United States dare deadbeat, China dare to confiscation these U.S. capital. To see who is more cost-effective?

Special note: The hair of this article is not intended to encourage countries to buy U.S. debt. Nor is it to buy U.S. debt how good. Just choose between bad and worse. The RMB is not the case of the world's major currencies, which is a kind of helpless choice. After all, the dollar is the only settlement currency of the commodity in the world. Leave he would not be able to do business. Know that the U.S. debt is how it is to let the majority of good netizens. Stop on those who attempt to spoil our country when hostile forces to subvert the Chinese government.