Hour X is getting closer: Russia is leaking American papers
Russia has halved the number of so-called treasuries or US government bonds it has. And she did it in record time, within a month. This happened literally immediately after the announcement of Anton Siluanov that Russia could well do without American government bonds.
Big sale of American bonds
If earlier our country owned US government debt in the amount of $ 96,1 billion, now they are left with 48,7 billion. According to statistics, such a sharp “dumping” by the Russians of US government bonds has never been observed in modern history. Moreover, over the past couple of decades, not a single country has rid itself of treasuries so dramatically.
Why do we need this?
There is an opinion that this step is dictated by political considerations and is a response to US sanctions and other unfriendly steps. Economists believe that these assumptions are groundless.
Given the fact that against the background of the general public debt of the United States, amounting to almost $ 20 trillion, the departure of 50 billion will not even be felt like an elephant.
Here, most likely, exclusively commercial considerations come to the fore. Of course, they are also connected with sanctions and the deterioration of Russian-American relations. In these conditions, the risk of freezing funds increases, as has already happened with Iran or Kazakhstan. Russia simply withdraws its assets from there, minimizing risks.
On the other hand, the value of these securities tends to decrease, therefore, our country is optimizing its investment portfolio by investing the freed funds in foreign deposits and debt obligations of other countries. Now, for example, it is possible for Russia to buy a large number of government bonds of China and Germany.
We are not alone
Today, Russia is not the only country actively getting rid of US government bonds. For example, a faithful ally of the United States, Japan has been actively throwing US government debt onto the market for the third quarter in a row, and in large volumes.
But the greatest threat to the American economics represents China. The leadership of this country has already gently hinted that the consequences of the trade war unleashed by Trump with the whole world, including the PRC, can be dire for the United States. After all, China is the world's largest holder of US government bonds.
While the US-Chinese negotiations were ongoing and Beijing was counting on the abolition of import duties, the Chinese sold treasuries in relatively modest amounts, about $ 6 billion.
Now, when there is no hope of concessions from the Americans, the PRC may begin a more active sale of the American public debt.
Reducing the bonds of the United States in the investment portfolios of other countries, of course, will not cause the collapse of the American economy, but it can be a small step on the road to rid the world economy of American hegemony and the dominance of the US dollar.
Big sale of American bonds
If earlier our country owned US government debt in the amount of $ 96,1 billion, now they are left with 48,7 billion. According to statistics, such a sharp “dumping” by the Russians of US government bonds has never been observed in modern history. Moreover, over the past couple of decades, not a single country has rid itself of treasuries so dramatically.
Why do we need this?
There is an opinion that this step is dictated by political considerations and is a response to US sanctions and other unfriendly steps. Economists believe that these assumptions are groundless.
Given the fact that against the background of the general public debt of the United States, amounting to almost $ 20 trillion, the departure of 50 billion will not even be felt like an elephant.
Here, most likely, exclusively commercial considerations come to the fore. Of course, they are also connected with sanctions and the deterioration of Russian-American relations. In these conditions, the risk of freezing funds increases, as has already happened with Iran or Kazakhstan. Russia simply withdraws its assets from there, minimizing risks.
On the other hand, the value of these securities tends to decrease, therefore, our country is optimizing its investment portfolio by investing the freed funds in foreign deposits and debt obligations of other countries. Now, for example, it is possible for Russia to buy a large number of government bonds of China and Germany.
We are not alone
Today, Russia is not the only country actively getting rid of US government bonds. For example, a faithful ally of the United States, Japan has been actively throwing US government debt onto the market for the third quarter in a row, and in large volumes.
But the greatest threat to the American economics represents China. The leadership of this country has already gently hinted that the consequences of the trade war unleashed by Trump with the whole world, including the PRC, can be dire for the United States. After all, China is the world's largest holder of US government bonds.
While the US-Chinese negotiations were ongoing and Beijing was counting on the abolition of import duties, the Chinese sold treasuries in relatively modest amounts, about $ 6 billion.
Now, when there is no hope of concessions from the Americans, the PRC may begin a more active sale of the American public debt.
Reducing the bonds of the United States in the investment portfolios of other countries, of course, will not cause the collapse of the American economy, but it can be a small step on the road to rid the world economy of American hegemony and the dominance of the US dollar.
Information