SMM11, 19 March: according to the report on international capital flows released by the US Treasury Department on the 16th, the total amount of US Treasuries held by foreign creditors was about US $6.2239 trillion by the end of September, down US $63.3 billion from the previous month. China cut its holdings by $13.7 billion for the fourth month in a row, but China remains the largest US creditor, holding 1.1514 trillion of US bonds. Japan, the second-largest creditor, cut its holdings by $1.9 billion and still holds 1.028 trillion of US bonds. Unexpectedly, Ireland reduced its holdings by $25.4 billion and France by $20.7 billion!
The yield on the 10-year US Treasury note has always been the basis of global asset pricing, and behind the US debt is actually a credit endorsement made by the US government, so in the market view, the US bond is the safest and most stable investment in the world, although the yield is not high. However, for the sake of the safety of national funds, US bonds are basically the first choice for central banks to invest in foreign exchange assets, and behind the current wave of US bond selling, in fact, it is the inevitable result of the US dollar credit crisis and the global wave of de-dollarization.
Trump has made the most of the damage of the dollar as the world's currency. Other countries are willing to use the US dollar as an international settlement currency out of trust in the United States. Unexpectedly, Trump used the dragon-killing knife of the US dollar for his own gain, and made it worse, acting like the first in the world. Caused a lot of international dissatisfaction. His priority for the United States is actually alternative nationalism, and his means of making the United States great again is based on the suffering of the people of Iran, Turkey, Venezuela and other countries. Since the beginning of this year alone, no one has been able to count the number of countries sanctioned by the United States. The United States' national credibility has plummeted as a result of the frequent economic sanctions, and the hegemonic position of the US dollar has begun to waver. Of course, other countries have to choose another smart one. At this time, the choices in front of us are the euro, the pound, and the RMB, which is on the way to internationalization, and so on. Since the RMB is not yet freely convertible, this has greatly affected the status of the RMB in international transactions. What can be seen is, As the first trading partner of 130 countries, the international status of RMB will be greatly improved after the liberalization of RMB.
The significance of the sell-off in Ireland and France, which is still unexpected, may be intriguing. Behind the French debt selling is a growing resentment between the United States and the European Union. A week ago, Trump went to Europe to mark the 100th anniversary of the end of World War I in order to get even with Macron, who called on the European Union to set up its own army to protect itself from the United States. And with the support of German Chancellor Angela Merkel, Trump has repeatedly tweeted against Macron and the European Union. Trump did not even take part in the commemoration of the death of the US military, turned his head and left, attracting netizens to ridicule. Since the beginning of this year, the alliance relationship between the United States and the European Union has fallen to a freezing point because of the problems of Iran and Turkey. The European Union is not only considering building its own army, but also establishing a bank settlement system independent of SWIFT, SPV,. There is going to be an ultimate showdown between the euro and the dollar, because Trump's actions have disappointed Germany and France, which want to get rid of the control of the United States, otherwise the next Iran could be the European Union!
Where does Trump want to lead the United States, is the future bright or dangerous? No one knows. For now, at least, Trump has put himself on the opposite side of the world, and the world is actively fighting it.
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