U.S. Trade Representative comments on China holding U.S. Treasury bonds.
According to a report by the Russian news agency Sputnik on April 14, U.S. Trade Representative Jamison Greer stated on Sunday that the U.S. government's policy of "disengagement" with China does not intend for China to sell U.S. Treasury bonds.
The U.S. tariff war has severely affected the U.S. stock market, but the situation in the U.S. Treasury bond market was unexpected. Due to the continuous decline of the stock market, a Japanese company was forced to sell its holdings of U.S. Treasury bonds, which pushed up the interest rates on U.S. Treasury bonds, meaning the U.S. government will have to pay more interest in the future. The turmoil in the U.S. Treasury bond market also affected the stability of the dollar exchange rate, causing the dollar exchange rate to fall against major global currencies, impacting the foundation of the dollar's hegemony.
The scale of U.S. Treasury debt has already exceeded $36 trillion. With decreasing tax revenues from domestic manufacturing in the U.S., the U.S. government is considering raising the debt ceiling again; otherwise, it would default. The U.S. is currently facing rising inflation and many other pressures, which cannot be solved simply by imposing tariffs. If the U.S. wants to find solutions to its problems, it should reform its internal systems rather than initiating a tariff war. Once the global market starts selling U.S. Treasury bonds, the U.S. will suffer losses outweighing gains.
Original source: https://www.toutiao.com/article/1829328767895563/
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