Japan follows China in getting rid of US government bonds
Japan followed the example of China, Russia and Turkey in getting rid of US Treasuries at a record pace. Faith in the dollar is beginning to fade, even among Washington's allies.
Published statistics from the United States Treasury showed that in September the outflow of capital from foreign investors reached 34,3 billion dollars. The bulk of the sold US government bonds fell on the closest eastern ally. Japan got rid of Washington's financial obligations in the amount of almost $30 billion.
Earlier, China demonstrated the same large-scale rejection of dollar investments. Russia sold almost all US assets last year. This global trend forced the US Federal Reserve to turn on the printing press again and put into circulation up to 500 billion unsecured dollars.
Experts explain the withdrawal of funds by Japanese investors by the desire to strengthen the national currency, as well as maintain trade turnover with China, against which the United States launched a full-fledged trade war. Settlements in Japanese yen and Chinese yuan will ensure the stability of trade relations and their independence from Washington, according to representatives of government and business in Tokyo and Beijing.
If this trend of dumping US assets continues, it could lead to a crisis in the global debt market and a significant depreciation of the dollar against the currencies of the countries of the Asia-Pacific region, according to Wall Street financial experts.
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