Us debt also was considered "security assets", in Washington continues to implementation strong dollars and strong us debt strategy of Shi, homeopathy strain, seize reverse operation, strategic reduction us debt and dollars reserves assets, will claims conversion for on include United States zainei of world all economic body of equity investment and interest investment, should is real to outside storage assets for China entity economic in overseas expanding of opportunities. United States Treasury 15th announced of data display, China October reduction 14.2 billion dollars us debt, holds scale hit year minimum records. This is this year August China on us debt most significantly single months reduction Hou and once more significantly of reduction. and except China outside, other emerging economic body as India, and Russia, country, also respectively appeared has 11% and 48% range of reduction. This seems to indicates that, in Europe debt crisis growing, us debt large by sought after of now, Emerging economies, including China, may have been to the reduction of strategic United States yields best time.
Long yilai, United States bonds has been was think is and dollars alike of global circulation sexual best of financial assets, and basic no default risk, is States Government and investors of optimization investment products. and, on market depth and liquidity,, United States bonds II level market stock up to 6 trillion dollars above, full can meet global stream of investment demand. However, in us debt prosperity of behind, is is United States debt of explosion type growth. ten years to, United States debt total scale by 5.3 trillion growth to 15 trillion dollars, Doubled has three times times, with annual domestic production worth (GDP) scale quite. trouble of is, United States of total debt scale more amazing, ended this year II quarter, United States family, and enterprise and government debt of sum on has reached about 36.5 trillion dollars, especially Government is not pay debt has accounted for to has GDP of 65%, this is since Shang century 40 generation yilai of highest level. due to United States main by issued bonds on debt
Works for then financing, therefore to new debt also old debt constantly push high United States bonds dependency of (bonds dependency of is means bonds years circulation and the years financial budget income of ratio). United States Congress Office (CBO) is expected to, this year United States bonds dependency of will will reached 67%, not only broad Yu last year 40% of bonds dependency of, more is greater than the almost is past 40 years 37% average of twice times. This year II quarter yilai, Europe debt crisis growing, European sovereignty bond was sharply selling, global funds inflow us debt market, include United States bonds and the other institutions bond zainei of dollars assets large by sought after. data display, United States Bond Fund past three a quarter of Trojan funds net inflow amount up 39.605 billion dollars, which United States institutions bond index and long-term company bond index more early respectively rose 15% and 12.18%, on even United States "two room" mortgage bond also rose 4% Above. Since three quarters of United States yields continued
IAM United States benchmark 10-year government bond yields almost a month to below 2% for the first time, hitting a record low, continue to maintain the world's cheapest debt financing costs. There is no doubt that United States Treasuries have been unprecedented overvalued, growing us debt bubble has been made. But, White House seems to has never been does not worried about us debt will was selling, because United States bonds unique of creditors structure decided has, us debt has to debtor and creditors firmly tied in has together. purchased us debt more more, on means with imbalances more serious, on more may was US debt bundle live hands and feet. in United States of bonds constitute among, except Government outside of other sector (include fed, and government management of various Fund,) holds about 40%, United States residents investors holds about 30%, foreign investors holds about 30%. past ten years, China holds United States bonds have experienced explosive growth, with an average annual growth of 36.8%. China holds United States Treasury bills from 2000
$ 71.4 billion in March, rose to us $ per cent in October this year, foreign investors hold a percentage of the total, rose to currently around 25% per cent in March 2000, holders of United States debt scale proportion in foreign assets reached more than 36%. And similar to the situation in China, most by resource exports and commodity exports accumulated trade surplus of emerging countries are actively purchasing United States treasuries. under the influence of this, from 2000 to 2008, the United States 10-year Treasury yields dropped by an average of 40%. over the past decade, United States Government's annual average more than $ 4 trillion of loans including debt refinancing scale. In this way, as the world's largest debtor countries United States, debt not only has no constraints on its formation, but as a tool for maintaining financial hegemony. United States almost all dollar-denominated liabilities, by virtue of the dollar's status as an international currency, "the dollar standard" not only support the United States international cycle of debt, can also benefit
With currency "valuations effect", through debt currency of or disguised devaluation increased national wealth, may creditors of sovereignty wealth risk is as United States debt risk long-term of, and debt currency of and synchronization rose. past 10 years between, emerging developing countries reserves total from about 750 billion dollars (equivalent to GDP of 11%) increased to near 6.3 trillion dollars, accounted for than has far over global reserves assets of 50%. If to gold price to calculation, from Shang century 70 early Bretton Woods forest system collapse so far, US dollar depreciated against gold near 100%, in particular since the beginning of this century, the price of gold rose more than 6 times, while devaluation of the dollar index over 36%. in the long term, United States debt continue to rise in sea level and monetizing debt caused by the devaluation, would allow the real purchasing power of creditors and sovereign wealth under considerable losses. because of the monetary policy and exchange rate policy and the national financial security is placed in a significant risk of
Xia, long cheap dollars and cheap capital, or enable the creditor country sinking deeper and deeper in the painful imbalances. In visible of future, despite United States bonds investment status destined to difficult to alternative, still was global depending on for security of investment products, but China of outside storage assets flows not only to considered liquidity, and proceeds sexual, more to considered strategic and prospect sexual. so, Sino-US between Zhijian of claims debt rely on relationship must break, continued holdings United States bonds of practices cannot fail to has important of changed. may, Europe debt crisis is a timing, due to European debt challenges fundamental impossible in short-term within are resolved, International market demand is also strong growth in the long-term government bonds to the United States, United States Treasury bond prices high last for a longer time. due to other investors buying Consortium, China gradually reducing United States long-term government bonds, would not give rise to United States Treasury bond market volatility. it can be said to be a relatively small risk of choice. Therefore, I think
