Ask an expert China s announcement of an increase in gold reserves is very bad for the U.S. Treasur

Of course it's not good. You understand it this way, for China, ** and foreign exchange reserves (dollars, euros, etc., including US Treasuries) are actually an asset. Generally speaking, if you hold more foreign exchange, you will have less.

Vice versa. This is because the renminbi is not circulated as an international currency, and it is actually still bought with foreign exchange. China's foreign exchange holdings are mainly in US dollars and US dollar government bonds.

If China announces an increase in reserves, it means that China will take out a significant part of its foreign exchange reserves (mainly US dollars) to buy. Internationally, U.S. dollar Treasury bonds are actually equivalent to the credibility of the U.S. dollar (both are repaid by the United States).** As reserves increase, holdings of U.S. dollars and U.S. Treasury bonds will decrease significantly.

That is, China is no longer interested in US national debt. If there is no buyer for a product, do you say it will work? So it's bad for the U.S. Treasury market.

China buys tens of billions of dollars of long-term U.S. Treasury bonds every month as foreign exchange reserves, and if some of them are changed to ** now, the value of U.S. Treasury bonds will fall sharply, affecting the ** and credit of U.S. Treasury bonds. Moreover, a large number of acquisitions (the international practice is settled in US dollars) will pull up, further exacerbating the depreciation of the dollar, the outside world's confidence in the United States will be reduced, it will be difficult to find buyers for treasury bonds, and the United States will fall into a dilemma of having no money available.

I am a junior at the University of International Business and Economics, I have compiled some information in the school, I hope you will take a look at it carefully, it should be helpful to your questions! China currently has nearly $2 trillion in foreign exchange reserves, 80 percent of which are in dollars, 60 percent of which are U.S. Treasury bonds. China's holdings of U.S. Treasury bonds account for about 10% of its issuance, and if China makes a move, the world will be watching.

It doesn't matter if you buy it, if you sell it, it will cause panic selling, and if the bonds in China's hands are not taken off, it will be substantial, and the US Treasury bonds in China's foreign exchange reserves will suffer painful losses, which is equivalent to not getting along with yourself. On the other hand, the United States lives by borrowing, and as soon as China sells, it is equivalent to cutting off the way for the United States to borrow, and the United States has no choice but to rely on the issuance of additional currency (indiscriminate printing of money) to maintain its finances. This has two more disastrous consequences:

First, the dollar will depreciate sharply, and the dollar part of China's foreign exchange reserves (accounting for 80%) will shrink seriously, and the US Treasury bonds in the middle will suffer from the double loss of dollar depreciation and ****, how much can China's foreign exchange reserves be left? Second, due to the additional issuance of banknotes by the United States, it will cause serious inflation in the United States, and the American economy will be in a mess. But the United States is currently China's largest export market, and if the market collapses, China's export enterprises will be wiped out.

A large number of enterprises in China that rely on supplying export enterprises will also suffer, and then trigger a chain reaction, the employees of these enterprises will be laid off, the demand of the domestic market will also shrink seriously, and how good can China's economy be?

Judging from the amount of U.S. Treasury bonds held by China, a large number of U.S. Treasury bonds will definitely put pressure on U.S. Treasury bonds and cause them to increase.

As a result, the yield to maturity of U.S. Treasury bonds will be raised, and the yield of U.S. Treasury bonds is basically used as a risk-free return, which is a relatively basic interest rate, so a large increase in yields will also affect a bunch of other interest rate levels.

Interest rates will be raised across the market. So for the banking system, it means an increase in the cost of capital, and then it further involves the real economy, that is, consumers will consume less, enterprises will borrow less, and in serious cases, the entire economy will fall into depression.

Of course, in order to prevent such a situation, the United States can stabilize the treasury bonds by repurchasing a large number of treasury bonds from the market, but this is equivalent to saying that it needs to passively put funds into the money market, and it will lose the initiative to implement monetary policy. In addition, the funds for the repurchase of government bonds will also put pressure on the fiscal body, and if a large amount of money is printed, it may cause inflation.

In addition, the degree of this impact is not the same in different periods, for example, in the current situation, the demand for U.S. Treasury bonds is very strong on a global scale, and its yield level is also at a very low position.

But if you don't take into account some other complicating factors, that's basically the case. Hope it helps!

That's quite a fluctuating wave. China's release of a large number of foreign exchange dollar reserves will lead to a sharp depreciation of the dollar, because trillions of dollars will lead to rapid inflation into the market, which may affect the rise of the dollar, because the dollar risk aversion is heating up, and the yuan, the pound, and the euro will also rise, for the same reason. In such a situation, the United States can only raise interest rates and absorb the circulating dollars.

Although the dollar is in a state of depreciation, the risk is not great, and it is also a long process for US Treasury bonds to be paid. There are many other reasons, specifically look at professional books.

This is equivalent to $600 billion to be put into the market.

1.The US dollar exchange rate will fall sharply, which is virtually equivalent to the appreciation of the renminbi, and it will lose tens of billions of yuan, and the export industry will also lose several billion yuan.

2.In the short term, the new dollar cannot be used in the real economy, so it will form hot money.

3.Because all developed countries have not yet survived the economic crisis, hot money will find ways to get into the so-called BRIC countries.

There will be inflation accordingly!

The expectation of a depreciation of the US dollar is rising, which is not good for exports.

The influx of hot money into China is accelerating, exacerbating the risk of inflation.

Damage to China's real economy.

Cannot be purchased in large quantities**.

Reason: **belongs to commodities, the rise and fall of commodities is too large, although now **** is on the rise, but maybe when those investors are short**, ** is beaten down, so that the loss of high ** is huge.

The cost of transportation and storage is high, too heavy, laborious to handle, and it is necessary to ensure safety; At the same time, the place of storage, the construction cost is high, or the storage in other countries, such as the United States, requires a lot of fees, in addition to the loss of trading, transportation, storage. There are also daily maintenance costs, security costs, and so on;

There is no interest income, which can only maintain value, not increase in value, unlike bank deposits and government bonds, which have annual interest income.

As for the settlement of the U.S. Treasury bonds in hand, you can sell them! However, it will definitely pull down, that is, sell at a loss; Throw it to whom? There are many people who buy U.S. bonds, China holds trillions of U.S. bonds, and all U.S. bonds in the market are about 14 trillion, and the Federal Reserve, civil servant retirement, pension, insurance, trade unions, etc. hold most of the U.S. bonds, and they can take over at will, and at the same time, there are also the sovereignty of Japan and Middle East oil countries, so there must be people who buy them; Although U.S. bonds have been downgraded, the yield on long-term U.S. bonds has fallen to the lowest, indicating that most investors are still optimistic about U.S. bonds and still believe that U.S. bonds are safe at this stage.

What you can think of Americans thought of 10 years ago, Americans have long seen through China's complete reliance on overdraft resource consumption to maintain meaningless GDP growth, so after entering the 21st century, any major international resources and bulk items have soared, and now even agricultural products are like this, and the typical thing is that China buys anything ** skyrockets, all for us. Therefore, **** has already soared n times, China is buying now, not to mention how much it may not be able to buy, because the United States, Germany and other ** reserves of the first and second largest countries do not ** any ** reserves, the market is limited, even if it can be bought, it must be the most ** in history, is a typical fool who takes the last baton.

Theoretically, yes, but in fact, after the U.S. credit rating was lowered, U.S. Treasury bonds were no longer favored by many entrepreneurs, so the method of exchanging U.S. Treasury bonds for ** is basically not possible. In addition to Warren Buffett, he supports the United States the most, but he is not a seller As for how to solve the problem of US Treasury bonds, it seems that I have not thought of -

China will not sell US Treasury bonds!

Here are two parts:

1. The shortage of funds in the United States is the so-called capital disconnection, which will lead to the inability of enterprises to finance, the stagnation of financial markets, and economic crisis.

2. China holds U.S. Treasury bonds, and the U.S. is short of funds, making maturing Treasury bonds unable to repay, which will lead to credit bankruptcy, which will depreciate the dollar.

This state will not occur unless the US economy collapses, and the inability to repay debts means that the country has gone bankrupt, the debt problem can only be resolved through negotiations, the US dollar will become invalid in international circulation, and the RMB will directly replace the US dollar.

Brother, your question is too big, I'm a small person and can't answer your question at all, do you understand what I mean, you should ask Lao Liang this question!

A country is concerned about the relevant U.S. policy because it will have an impact on the national interests of each country, and there is a complex relationship of interests between countries, A is correct. The national interest does not include only economic interests, b wrong. The determinant of international relations is national interests, c wrong.

d does not correspond to the title.