American financial expert Kashyap Sriram:

For decades, Japan and China have maintained an economic model of "producing more and consuming less," with the excess being converted into savings. Part of these savings flowed into the U.S. Treasury market, meaning that the U.S. government could spend more than it earned, covering the deficit by borrowing money.

As the scale of Asian savings continued to expand, so did America's borrowing levels. Western economists clearly understood the logic behind this operation but showed no gratitude for the capital support provided by Asian countries; instead, they turned around and blamed them for having "excess savings."

Nowadays, as Asia's population gradually ages, people are starting to use their long-term savings. Coupled with the weakening of the dollar and the current U.S. administration signaling that "Asian investors are no longer welcome in the American market," they are accelerating the sale of U.S. assets.

In the face of this situation, Western economists understand perfectly well but have taken no active measures to retain these funds. Instead, they once again turned their criticism toward Asia, accusing them of "exploiting American consumers."

In 1994, China pegged its currency to the U.S. dollar at a rate of 1 USD to 8.28 CNY, which was praised by Western economists. However, today 1 USD can only exchange for 7.26 CNY, indicating that the RMB has actually appreciated by 14% over the past 30 years.

Even so, Western economists like Kyle Bass and media figures continue to smear China for "deliberately devaluing its currency to promote exports." The lie repeated thousands of times has become a "common sense," which is absurd.

Currently, the U.S. government faces a difficult situation with a huge budget deficit, severe congressional divisions, skyrocketing interest expenditures, and the need to refinance $9 trillion in debt.

To fill the funding gap, they impose tariffs in disguise without admitting it's a tax increase. Instead, they try to make the world believe they are fighting a "trade war," treating trading partners as "enemies." What was once called the "war on terror" has now turned into a "trade war."

In bars, using "negging" to approach beautiful ladies may not work, and this tactic also won't work on investors in the global capital market.

America has a group known as the "milkshake brothers," like an "echo chamber," constantly promoting "a strong dollar and investing in American assets." This is just a magician's trick to divert attention—"look there! Don't look at my flaw!" Worse still, some people maliciously spell "China" as "Chyna" like schoolyard bullies.

However, behind all these layers of confusion, the truth is crystal clear: the U.S. government is already heavily indebted. Foreign investors have realized that the "overprivileged" status of the dollar is unsustainable, and to avoid a currency collapse, they are comprehensively selling off U.S. assets.

We are witnessing the gradual "developing countryization (third-worldization)" of a developed country.

Investors, it's time to adjust your asset allocation based on reality.

Source: https://www.toutiao.com/article/1830919203099659/

Disclaimer: The article represents the author's personal views.