China's abandonment of the American national debt speaks of an impending war

March 17 2021 40

China is increasing its economic muscles and seeks to build a world economic system independent of the United States, and in this process, Beijing enters the predicted confrontation with Washington. Thus, the European Parliament refused to ratify an investment agreement with China, allegedly because the latter violates human rights. However, it is no secret that Brussels is under severe pressure from the United States, which, according to analysts at Global Research, is trying to form a coalition against China.

The PRC has implemented its own program of economic modernization and is initiating large-scale transport projects like the New Silk Road. In this context, Beijing pays great attention to cooperation with Russia, whose foreign trade turnover is growing from year to year. The volume of Chinese investments in the United States over the past three years has decreased by 90 percent.

The United States is even more worried that China has cut its share of US government debt from 14 percent to 5 percent in the past decade. The share of the US currency in China's foreign exchange reserves has fallen over the past four years from 79 to 59 percent. Moreover, it seems that Washington is unable to stop this emerging trend by peaceful means and is trying in its own manner to aggravate the situation in the military sphere.

Thus, the head of the Indo-Pacific Command of the United States, Admiral Phil Davidson, expressed the idea of building a complex of missile bases and satellite systems around China, demanding from Congress for this purpose $ 27 billion over the next five years. Thus, Beijing's progressive abandonment of the US national debt could lead to a large-scale military conflict.

We must start confronting China from a position of strength

- said the US Secretary of State in the Biden cabinet Anthony Blinken.

NATO Secretary General Jens Stoltenberg spoke in the same spirit on February 19, calling on Europe and the United States to uphold the principles of international order, which China and Russia allegedly challenge.

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Vladest

-5

17 March 2021 17: 45

There will be no war. The two biggest trade partners for each other. Agree, get used to it.
1. maiman61
  
  +5
  
  18 March 2021 06: 21
  
  Absolutely right! It's just that the minke whales don't understand their place yet! And their place is about, well, you yourself know!
123

+15

17 March 2021 18: 40

First of all, this suggests that the American national debt is junk candy wrappers. It is strange to expect different behavior from China. They declare him the main enemy, impose sanctions on him, and in these conditions will he buy cut paper?
Not so long ago, there were many merry fellows discussing that similar actions of Russia are about nothing and that it is not visible in the world economy. Isn't it so funny now?
Putin has paved the track, the Chinese will lay asphalt in this direction, traffic on the new highway will be intense. And let the FRS buy its own candy wrappers.
As for the European satellites, they are not far off to fight, the maximum will indicate activity. They will send to make some noise who do not mind. Who is there on the eastern flank of NATO?
1. Vladest
  
  -13
  
  17 March 2021 18: 55
  
  Quote: 123
  First of all, this suggests that the American national debt is junk candy wrappers.
  
  That is, according to your opinion, the Chinese have bought one trillion of US national debt in full. Or you are not a fig do not understand the topic.
  What China can do with American securities. To refuse them means to forgive the States for a trillion. Who will feel good about this?
  The second option is to resell. Selling the Central Bank in this amount, China will bring down the market, the price of securities will fall and who will lose from this? That's right China itself.
  China is not cutting bad interest on American debt. And he will do it further.
  1. 123
    
    +11
    
    17 March 2021 19: 40
    
    That is, according to your opinion, the Chinese have bought one trillion of US national debt in full. Or you are not a fig do not understand the topic.
    
    No, not complete, otherwise I would not get rid of this garbage.
    
    What China can do with American securities. To refuse them means to forgive the States for a trillion. Who will feel good about this?
    The second option is to resell. Selling the Central Bank in this amount, China will bring down the market, the price of securities will fall and who will lose from this? That's right China itself.
    
    That is why they get rid of them gradually.
    
    China is not cutting bad interest on American debt. And he will do it further.
    
    Profitability? 1,3% and 2% with inflation gaining momentum? I watch you understand the topic
    
    The US government debt market - the largest on the planet and equal in size to a quarter of the world's GDP - is experiencing a sell-off it hasn't seen for at least 7 years.
    Treasury prices are falling rapidly and yields are rising amid accelerating inflation in the US and around the world, which has raised fears that central banks will have to roll back zero interest rates.
    The yield on 10-year US securities, which in summer fell to a historic low of 0,59% per annum, soared to 1,3% and renewed its annual maximum.
    The yield on 30-year bonds rose from 1,2% in August to 1,65%, and by mid-February, for the first time in 12 months, exceeded the 2% target.
    Investors are ditching US stocks as the dormant specter of dollar inflation begins to grin.
    
    https://www.finanz.ru/novosti/obligatsii/na-rynke-gosdolga-ssha-vspykhnul-inflyacionny-pozhar-1030092716
    
    By the way, your feeder has problems on the horizon too. Congratulations, fun times await you
    
    Following the American papers, the German ones are depreciating: the yield of 30-year bunds on Wednesday for the first time since March last year rose above zero.
    1. Vladest
      
      -7
      
      17 March 2021 21: 17
      
      Quote: 123
      By the way, your feeder has problems on the horizon too.
      
      You already have them.
      1. 123
        
        +13
        
        17 March 2021 21: 24
        
        You already have them.
        
        We are used to solving our own. It will be a new and interesting life experience for you.
        
        Vladest
        
        -14
        
        17 March 2021 21: 34
        
        Quote: 123
        You already have them.
        
        We are used to solving our own. It will be a new and interesting life experience for you.
        
        You're lying. Not a single country in the world is capable of this. And especially Russia. What would you do without importing high technology.
        
        123
        
        +9
        
        17 March 2021 21: 52
        
        You're lying. Not a single country in the world is capable of this. And especially Russia. What would you do without importing high technology.
        
        It is customary to pay for technologies, and we pay our own, in contrast to some backsliders.
        If there are no technologies, Russia creates them.
        And yes, it was about financial problems. Would you like to repeat A. Tolstoy's quote?
        
        Vladest
        
        -4
        
        18 March 2021 11: 15
        
        In Estonia, in contrast to the Russian Federation, exports are products and not raw materials from the raw material appendage of China.
        
        123
        
        +4
        
        18 March 2021 11: 20
        
        In Estonia, in contrast to the Russian Federation, exports are products and not raw materials from the raw material appendage of China.
        
        You have no raw materials for a long time, this is the only reason The rest of the export is an imitation of violent activity with the money of the European Union.
        Show pride for once in history, become independent.
        
        Vladest
        
        -4
        
        18 March 2021 11: 25
        
        Quote: 123
        You have no raw materials for a long time
        
        So soon you will eat it YOURSELF.
        
        The comment was deleted.
  2. Ulysses
    
    +6
    
    17 March 2021 21: 03
    
    That is, according to your opinion, the Chinese have bought one trillion of US national debt in full. Or you are not a fig do not understand the topic.
    
    Or you have problems with literary Russian ..
    
    The United States is even more worried that China has reduced its share of US government debt in the past decade. from 14 to 5 percent... The share of the US currency in China's foreign exchange reserves has fallen over the past four years. from 79 to 59 percent.
    1. Vladest
      
      -2
      
      18 March 2021 11: 46
      
      Quote: Ulysses
      The United States is even more worried that China has cut its share of US government debt from 14 percent to 5 percent in the past decade. The share of the US currency in China's foreign exchange reserves has fallen over the past four years from 79 to 59 percent.
      
      How bad did this make the United States? China has long become really great in contrast to the Russian Federation. But the trillion dollars that they keep is not a small amount.
      The history of the United States is a story of success and ability to solve global problems. Without them, both Worlds are not known how they would have ended.
      By the way, Japan's public debt is several times higher than that of the United States, but it hasn't died. And death is not visible.
      Moreover, the national debt is considered not in dollars but as a percentage of GDP. Does it even get it?
      If the US GDP is about 20 trillion ... then I think you won't have any problems with mathematics)))
      1. Ulysses
        
        +1
        
        18 March 2021 19: 46
        
        The history of the United States is a story of success and ability to solve global problems. Without them, both Worlds are not known how they would have ended.
        
        The United States has long forgotten how to solve not even global, but local problems.
        Afghanistan for you as an example.
        Twenty years !!! incomprehensible presence with minimal success.
        
        The world would have ended without the United States with the same results.
        
        Vladest
        
        -2
        
        19 March 2021 13: 09
        
        Quote: Ulysses
        Afghanistan for you as an example
        
        Afghanistan is how you destroyed and abandoned the country. And conscience does not torment. And the United States is there to clean up for you. You rushed to save the skin of Assad in Syria, but not to redeem your debt to Afghanistan. What did Russia do to make peace in Afghanistan again?
        Or the last meeting in Moscow is not a sign of an emerging political solution to the problem.
        
        Ulysses
        
        +2
        
        19 March 2021 23: 50
        
        Afghanistan is how you destroyed and abandoned the country. And conscience does not torment. And the United States is there to clean up for you.
  3. Bakht
    
    +10
    
    17 March 2021 21: 09
    
    Small clarification.
    I have heard more than once that China itself will suffer from the sale of American Treasuries. But this is the wrong formulation of the question. The US national debt is about 25 trillion. dollars. Of these, Treasuries account for about 30%. That is, roughly speaking, 7-8 trillion. evergreen.
    I do not know the structure of China's debt obligations. But if China loses $ 1 tril, then the rest of the world (in particular the United States) will lose $ 24 tril.
    In my opinion, China can calmly bring down the entire financial structure of the West and only benefit from this.
    Treasury yield is 1,6%. On an annualized basis, from 1 tril it makes probably 16 billion a year. Not so good percentages. Given that China's GDP is 23 trilles at PPP.
    Yes, and China is not the largest holder of US government debt. In second place. Japan is on the first, Great Britain on the third. It will be bad for everyone. But China's task is to do badly to everyone.
  4. boriz
    
    +11
    
    17 March 2021 23: 43
    
    The second option is to resell. Selling the Central Bank in this amount, China will bring down the market, the price of securities will fall and who will lose from this? That's right China itself.
    
    You, I see, do not know how to count to three. And there is a simple way out: gradually, as the securities expire, hand them over to the issuer and collect the bucks. And change the bucks for something else, not American. This is what China is doing, not listening to all the braked wiseacres.
  5. Onlooker
    
    0
    
    19 March 2021 16: 26
    
    What are some good Treasury interest rates? 0.0% China invests in its infrastructure
2. shvn
  
  +1
  
  17 March 2021 21: 42
  
  - Who is there on the eastern flank of NATO?
  - Ukrainians and Balts.
  1. 123
    
    +6
    
    17 March 2021 21: 54
    
    The first are not included in NATO Tell your Estonian colleague about the rest, otherwise he doesn't know
    1. Petr Vladimirovich
      
      0
      
      18 March 2021 17: 38
      
      Dmitry hello! How are you? Colleague Vladiest wrote here that he is a businessman from Latvia, in Estonia and Lithuania he goes on business trips ...
      1. 123
        
        +2
        
        18 March 2021 17: 42
        
        And hello to you! Welcome back If from Latvia, then the situation looks even more fun
        
        Petr Vladimirovich
        
        0
        
        18 March 2021 18: 22
        
        Now I'll write in a personal ...
Sergey Latyshev

+3

17 March 2021 18: 50

Ha. Whatever happens, the authors reduce everything to war and blood.
We just screwed up with the 15th number, and again ...
1. Igor Berg
  
  -4
  
  17 March 2021 19: 44
  
  yes, almost everyone here, like the authors (copy-paste, and not the authors in fact) sing to the same tune
Alexzn

-3

17 March 2021 19: 19

Chain
China refused to export to the United States for half a trillion dollars?
China decided to sell its goods not for cut candy wrappers, but for full-blooded yuan?
Does China have options to change its export policy?
Does China have many options for attracting dollar earnings?
1. 123
  
  +4
  
  17 March 2021 19: 47
  
  China refused to export to the United States for half a trillion dollars?
  
  So the United States did not give up exporting to China.
  
  China decided to sell its goods not for cut candy wrappers, but for full-blooded yuan?
  
  That is how The process is already underway. There are some doubts about "full bloodedness" there is not much more "blood" than in dollars or euros.
  
  Does China have options to change its export policy?
  
  Does he have options? He is not given a choice
  
  Does China have many options for attracting dollar earnings?
  
  At first, payment for American imports.
  
  Actually, we are talking about public debt and not about reserves. The share of the dollar in international settlements will decline more slowly. The force of inertia is very high.
  1. Alexzn
    
    -3
    
    17 March 2021 20: 02
    
    States sell two and a half times less.
    The fact that China has decided to sell for yuan in trade with the United States is a revelation to me. The whole point in trade with the United States is the ability to produce for yuan (full-blooded ), and sell for dollars (cut candy wrappers ).
    Of the options for attaching dollar earnings, the purchase of US Treasury debt is not the worst option.
    1. 123
      
      +5
      
      17 March 2021 20: 57
      
      States sell two and a half times less.
      
      And that's a big problem
      
      The fact that China has decided to sell for yuan in trade with the United States is a revelation to me.
      
      Who told you such nonsense? China is looking for a replacement for the American market, including through the growth of domestic consumption. Naturally, there is no complete replacement. Who else on the planet is capable of making money out of thin air? So it looks like double-digit growth figures for China in the past. What to do, not all the cat is Shrovetide. Who is it easy for now? He still has no choice.
      
      The whole point in trade with the United States is the ability to produce for yuan (full-blooded), and sell for dollars (cut candy wrappers)
      
      That is why the trade turnover will decline. I don't see any fundamental difference between "full-blooded" and "cut candy wrappers". Is that the trade in candy wrappers has long been established and familiar to everyone. We'll have to work on bringing a "new product" to the market - the yuan.
      
      Of the options for attaching dollar earnings, the purchase of US Treasury debt is not the worst option.
      
      As you can see, it is far from the best. What's the point? The Chinese plow around the clock, produce, sell for dollars, and bring dollars back to the Americans. What is left with them? Beautiful pieces of paper? Which Americans print in unlimited quantities. The system worked, but circumstances are changing, contradictions are growing. And probably the Chinese are a little offended and jealous. They plow for what others just type. When Trump and then Biden "throw" new trillions into the market, the Chinese are surely wondering - what could have been so? It looks like they decided to copy this "technology" and start printing themselves.
Jacques sekavar

+5

17 March 2021 19: 51

All whom the Sshasovites are trying to stifle with sanctions are looking for ways to get around them, and the threat of disconnection from the global interbank system and the seizure of assets leads to their withdrawal from the Sshasa jurisdiction.
Option - abandoning the dollar and creating an alternative financial system, including an interbank communication system, settlements, stock exchanges, etc.
It's not a quick matter, but given the capabilities of the PRC and the number of states which the Sshasians have crushed with their sanctions, the trend is clearly visible.
Ulysses

+5

17 March 2021 21: 25

The abandonment of the dollar will proceed smoothly, unless Washington does something completely extraordinary.
However, the process has been launched and the United States sees it.
Given the ever-growing economic role of China, we have to react somehow.
The only question is the adequacy of the Washington inmates.
1. shinobi
  
  +5
  
  18 March 2021 04: 47
  
  But the US has obvious problems with adequacy. At all levels. However, there will not be a hot war. The US economy, with all its inflatedness, will not pull a big war. As well as an orderly worn-out army from which only a beautiful picture of the early 90s remained.
Oder

0

18 March 2021 14: 51

Quote: Vladest
There will be no war. The two biggest trade partners for each other. Agree, get used to it.

Yes, but who will buy goods from China then? If the US and European economies collapse, China's economy will collapse. Domestic demand is not endless, they need retail outlets.
1. Petr Vladimirovich
  
  0
  
  18 March 2021 17: 53
  
  The US population is 300 million, the EU population is 500 million. And how many people are there in this world? Three TVs in the apartment, I have so many. Two refrigerators are the same ...
  So the light did not converge like a wedge ... And their 1,4 billion will ensure that they are actively doing and will remain on the rest ...
amateur

+2

18 March 2021 17: 26

Quote: Vladest
In Estonia, in contrast to the Russian Federation, Export is a product

Sprats? Or guest workers? Estonians even in the USSR did not do anything good.
1. Petr Vladimirovich
  
  +1
  
  18 March 2021 18: 36
  
  Come on! Sprats, Vana Tallinn. And in Latvia there are receivers, RAFs, electric trains. There are refrigerators in Lithuania. I am silent about the machines. Several powerful ports. The showcase of the USSR lived well ... For his money ...
vitaly savkin

0

April 1 2021 22: 36

Having thrown off the US national debt, China will follow joint paths with the Russian Federation and EVRAZES. There are organizations in which both China and Russia are members. There is much more interesting than the United States, which impose sanctions on demanding money in debt.
Alexey Shcherbatov

0

April 23 2021 05: 55

And meanwhile

China also refused from a military alliance with Russia.

Russian Foreign Minister Sergei Lavrov returned from an official trip to China empty-handed.

China is not going to, together with Russia, respond to the attacks of the West, much less create a military alliance with Moscow.

Meanwhile, the Central Bank of China defiantly in response to Lavrov's words announced the expansion of cooperation with the SWIFT system. A joint venture between SWIFT and four Chinese banks will be set up in China to provide services domestically.

Moreover, during Lavrov's visit, China announced the signing of a cooperation agreement with Iran, which involves investments of $ 400 billion in the oil sector, industry and telecommunications. For comparison: China invested only $ 1,8 billion in Russia, or 0,4% of the total volume of foreign investments in the real sector of the economy. Thus, China once again pointed out to Russia its place in its world order.