Media: China is preparing a collapse of the US dollar


Beijing is ready to start selling American securities (government bonds), which will provoke a collapse of the US dollar. It is reported by the South China Morning Post, Hong Kong's oldest English-language newspaper.


The publication writes that China is the holder of $ 1,1 trillion of US government bonds and is now considering the possibility of reducing its investment in these securities. This happened after the intensification of the “verbal war” between Washington and Beijing over the coronavirus, which caused tension in bilateral relations.

According to analysts of the publication, the possible actions of Beijing can create serious problems in the US government bond market. Indeed, now Washington is actively increasing the issuance of these securities to finance programs to combat the COVID-19 pandemic and its consequences (economic crisis).

It is emphasized that such a risky and radical step is likely to damage the reputation of the United States and cast doubt on the ability of this country to pay its bills (debts) in the eyes of investors around the world. It is explained that such a measure in Beijing is seen as extreme, and China will try to put pressure on the United States in another way.

In turn, Deloitte China chief economist Xu Sitao told the publication that China and Russia are discussing the possibility of not using the US dollar, which Washington uses as a weapon on the world market.

I must add that recently in Washington they decided scare Beijing is a possible “punishment for coronavirus,” in the form of refusal to repay US debt. The Americans suspected the Chinese that they misinformed the international community and were hiding information about the coronavirus. From Beijing, it was then stated that China has taken an open and responsible position from the very beginning of the COVID-19 epidemic and does not hide information from the international community about this dangerous infection.
  • Photos used: https://pixabay.com/
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  1. Sergey Latyshev Offline Sergey Latyshev
    Sergey Latyshev (Serge) 9 May 2020 10: 43
    +2
    Yeah, how not to believe the Chinese.
    Russia has recently sold 100 billion bonds - has the dollar even fallen slightly?

    USD 73,40 while the exchange rate is still rising against the ruble.
  2. Oleg Rambover Offline Oleg Rambover
    Oleg Rambover (Oleg Rambover) 9 May 2020 12: 41
    -2
    If the Chinese want to commit economic suicide, then yes, they can bring down.
  3. Igor Pavlovich Offline Igor Pavlovich
    Igor Pavlovich (Igor Pavlovich) 9 May 2020 13: 05
    -5
    How masterfully words are selected in the article.
  4. GRF Offline GRF
    GRF 9 May 2020 13: 21
    +2
    It all depends on who will buy them and how.
    These American "treasures", exchanged for American dollars, are a bottomless sea. If there is a default on them, then the current American government will suffer (it will retire to a well-deserved retirement), the next, most likely, will declare as Poroshenko - for the debts of the previous ones is not responsible. And the holders of "treasures" do not see the dollar, having exchanged them for government papers, they will not see it, and therefore cannot bring it down in any way. Moreover, if these paper "treasures" are bought by the Japanese, Germans, Indians and others. The worst option - the redemption of the Fed's "treasures" (in fact, the exchange of one piece of paper for another, such as much more valuable) is unlikely to happen, because it is in this case that the dollar will collapse, i.e. there are not so many goods and services in the world that it would be possible to spend all the Chinese dollars (after all, China also needs to get rid of them) without raising prices, you mean, causing hyperinflation and the depreciation of the dollar. But even in this case, there is no catastrophe for America. They will carry out a denomination, where 1 lem of the current bucks will be equal to one new one and that's it. Another popular method is to freeze accounts, i.e. it is "legal" to rob. America will not sell its resources, production, real estate for its own money, well, not for this, it printed pieces of paper and exchanged them for resources, production, real estate of the aborigines, in order to return the tribute to the aborigines previously paid by them for American "treasures" ...
    America violates its obligations so much that its reputation will not suffer from this either, it is such an exceptional one.
    1. Orange big Offline Orange big
      Orange big (Max) 9 May 2020 13: 38
      +2
      It all depends on how adequately Americans behave. And then it seems that the roof they finally left.

      NEW YORK, May 7. / TASS /. The fate of the Soviet Union is destined for China in the event that it does not abandon its authoritarian regime in favor of Western policy. With such a warning on Thursday, US Secretary of State Michael Pompeo spoke in the author’s broadcast of Steve Gruber.

      https://tass.ru/mezhdunarodnaya-panorama/8421521
      1. GRF Offline GRF
        GRF 9 May 2020 13: 53
        +2
        America has already received a gesheft and is unlikely to want to get rid of it. They made a mistake with the Chinese, “you, priest, wouldn’t be chasing cheapness (labor. Power)”, but it’s not too late to catch up (China is failing on many trade issues). Further, they take out production facilities (machine tools, managers) to the maximum, and then they will shamelessly fine all buyers of Chinese, for violating American intellectual property, and it does not matter that it is no longer there.
        But China knows the fate of the USSR, since the Americans were deceived, they will probably be able to do it again.
        Whether the world will survive the new "Cuban crisis" - I don't know, two monkeys with grenades - this sadness can touch many ...
        1. Bulanov Offline Bulanov
          Bulanov (Vladimir) 9 May 2020 15: 19
          +3
          Well, the Americans will take out the machines, but will they pay their citizens, like the Chinese? Then Sanders will definitely come to the presidency! Is it possible that they will begin expanding their gulag in the States for cheap slave force for prisoners of blacks and Mexicans?
          If China does not find its traitors in the CCP, the US will not do anything with them. And in the USSR they would not have done it, but alas, during the collapse of the USSR - the word "Patriot" was a dirty word ...
          1. GRF Offline GRF
            GRF 9 May 2020 15: 56
            +2
            Machine tools are exported to Vietnam, Cambodia, Ukraine is bustling, offering itself ...
            America will, as before, provide intellectual services (so that there is a reason for sanctions), educate, amuse / entertain, elites offer real estate for overseas elites (for reins), produce weapons, and conduct financial and legal affairs around the world ... They they don’t want to change this, therefore they will raise the price tag even more for themselves, for their beloved ones, for the sake of prestige. Well, there is no cheap. And Trump will not do anything against the economy here, he is a businessman, but also a politician - therefore he says a lot.
            As for the traitors among the Chinese - yes, enough, depending on how to count and what to mean by that. The disagreement in the media that survived the views of Tiananmen was more likely to be held back than changed, and the whole of Taiwan and the Chinese were Chinese who think differently. And the local oligarchs who do business with the West, although they are silent now, can also say their own thing.
            But at the same time, the hope for China that it will not easily deflate, seeing their collective boycotts of Western and Japanese manufacturers, their philosophy and discipline remains ...
            As for the USSR, in my opinion, its problems, which caused it to collapse, remain, even though the state has decreased, but the "system" has changed, and they are calling themselves patriots more and more ...
    2. cmonman Offline cmonman
      cmonman (Garik Mokin) 9 May 2020 17: 46
      -1
      It all depends on who will buy them and how.

      It is already known who will buy back - the USA.

      However, according to some experts, China's dumping of even the entire US national debt will not lead to any collapse of the dollar, since the US Federal Reserve will buy it "to the last cent." What is $ 1,1 trillion. US government debt, which is owned by China, against the background of the fact that the Fed has bought $ 2,5 trillion in government bonds over the past month and a half. and continues to engage in such redemption. On the other hand, the dumping of the US national debt by China may lead to a chain reaction that cannot but affect the American economy.

      “China has threatened the United States with deliverance from American debt”

      https://topwar.ru/171025-kitaj-prigrozil-ssha-izbavleniem-ot-amerikanskih-cennyh-bumag.html
  5. stef13ch Offline stef13ch
    stef13ch (Yadykin) 9 May 2020 16: 14
    +2
    And I do not hesitate to ask: "Who, for example, will buy what the Chinese are going to sell" ..?
    1. cmonman Offline cmonman
      cmonman (Garik Mokin) 9 May 2020 17: 07
      -3
      Here is one observer's view of the world after coronavirus:

      Michael Clarke believes that the Asian bias in the world will not stop after the pandemic, but, most likely, its negative impact on the economies of these countries will be felt for a whole decade. the problems of the coronavirus, and in national reassessments of resilience and supply chains that are so heavily dependent on China, ”he said. It is too early to speculate on what the international system will be like after the pandemic. It can be argued that the sense of duty to the state and the solidarity shown in World War II became part of the post-war order of life. It would be great if something similar happened now, but this is hardly worth expecting.

      And if China throws off $ 1.1 trillion of securities, the United States will print $ 1.1 trillion and buy up its own securities. There will be slight inflation, but it will be possible to survive.
      1. isofat Offline isofat
        isofat (isofat) 9 May 2020 17: 17
        +1
        Quote: cmonman
        Here is one observer's view of the world after coronavirus

        Garikagain opinion. In this case, how can I evaluate the source of information? Or are you just publishing gossip?
        1. cmonman Offline cmonman
          cmonman (Garik Mokin) 9 May 2020 17: 34
          -3
          Fill in Google the first phrase of the quote Michael Clark thinks the Asian bias in the world and find the source / article. Your comment about the article does not interest me.
          Your ignorance of the possibility of the Internet in the search for the source complements my opinion about ....
          1. isofat Offline isofat
            isofat (isofat) 9 May 2020 17: 51
            +3
            smile Garik, do not be offended and leave your arrogance. Be friendlier to your readers, do not forget to specify a link.

            PS You are from a country that has proven itself on the bad side, whether it is true or not, it will depend on your behavior on the site.
      2. 123 Offline 123
        123 (123) 10 May 2020 00: 16
        +3
        And if China throws off $ 1.1 trillion of securities, the United States will print $ 1.1 trillion and buy up its own securities. There will be slight inflation, but it will be possible to survive.

        You are experiencing inflation easily, because it was thrown off on others and it was not reflected on the dollar exchange rate. If the dollar starts to fall in price, it is less interesting as a reserve currency and an international means of payment, an unstable rate leads to a decrease in demand for the dollar. And China is not introducing digital yuan next week. China's share in international trade (approximate figures) is 20%, trade for the yuan is about 2%, they will translate trade into yuan. This is approximately - 15% of trade for dollars. It becomes not the dominant means of payment, but only one of the currencies. The possibility of pressure on market participants is sharply reduced. If they cannot impose a dollar, demand for it is still declining. And so in a spiral. In the long run, this is a fiasco. yes
        And then the troops, they say, slowly began to withdraw from Saudi Arabia. America is not interested in their oil, in its bulk. If the "roof" leaves, they can start trading not for dollars, because the main buyer refuses oil, they will have to sell it to China, which is the yuan.
        In general, Gaddafi is a petty rascal compared to the Chinese, which is why the situation on the seas has worsened. All these "graters" off the Spartly Islands, American destroyers in the Barents Sea (trying to block the northern sea route). But breaking China like Libya is unlikely to be strong enough.
  6. Nikolay Malyugin (Nikolai Malyugin) 10 May 2020 06: 26
    +1
    By purchasing in large quantities the currency of a state, you either help the economy of that state, or you have a desire to collapse this currency. I see no other way.
  7. Here we are whining with all my heart!