How to treat a large number of Chinese holders of U.S. treasury bonds
In the near future, "the United States to become China's largest overseas bond holders" This news has become the focus of attention. In the face of the complex international financial situation, we should look at how the new changes? First of all, one must acknowledge that the reality is that the dollar is still the most important international currency, the dollar assets of the depth and breadth of the market in the world today is still second to none. After World War II, U.S. hegemony despite wind and rain, but had survived, simply because there is strong U.S. support for the comprehensive national strength, the exchange rate policy and national interests around the long-term trend in U.S. dollars. U.S. dollar exchange rate ups and downs of the United States can bring huge economic benefits, the United States will also step up efforts to maintain the U.S. hegemony. The world's major central bank's foreign exchange reserves, the proportion of U.S. high as 60% more than in recent years, relatively stable. Even if the dollar-denominated assets held by the major sell-off a large number of people interested in, not to mention the book value of assets on the stock of major impacts on how to find buyers as well as cash funds to switch to the market which are problematic. Secondly, look at how the United States treasury bonds and other assets such as commodities in the overseas assets of China's foreign exchange reserves, in particular the position? China is a shortage of resources and energy, the next copper, oil and even water resources and energy will seem very valuable, but such Jiancang direct large-scale product is not realistic because of our huge amount of foreign exchange assets, and easily lead to international financial Substantial market volatility and cause unnecessary friction. Only the size of 200,000,000,000 U.S. dollars of investment in companies in the global financial market impact has been more than we imagine, let alone 10 times in the foreign exchange reserves had. This is not to say we do not have reserve assets of decentralization, indirectly, to buy part of the strategic commodity is useful, but we do not deal with small-scale decentralization brought about by the improvement in the overall rate of return have high expectations. In fact, the current U.S. national debt is still the most international financial market liquidity, relatively low credit risk assets, especially short-term bond holdings are a crisis varieties during the "cash is king" a manifestation of ideas. This corresponds to that the U.S. Federal Reserve data released last week showed that foreign central banks in the last seven weeks in a row to reduce the risk of high U.S. agency debt, and the United States continue to favor bonds. Third, in an increasingly complex game in the country, we should take full advantage of the creditors of the initiative, although not have to follow the example of the United States, the International Monetary Fund, and other international assistance, taken almost to blackmail. On the United States, China to relax export restrictions on high-tech products to Chinese financial institutions to open up access for U.S. financial system, China in the United States to allow more freedom of mergers and acquisitions and so on, can become the content of the negotiations, which are The United States believed there should be liberal meaning. We have a view of the huge amount of foreign exchange assets of China to carry out the international aid should be extended to a wider range, should be able to China in the international economic and financial system have the right to reasonable discourse. At the same time, for holders of government bonds, such as the United States could face the depreciation of the exchange rate, inflation risk, we can ask a higher premium and safeguards to further consider the issue or Panda bonds. Finally, although "the largest overseas holder," Our growth in wealth, but did not feel well-off simultaneously strengthening our economic development there is room for improvement. In the United States published by China's Ministry of Finance held by the U.S. Treasury data, the majority should come from our foreign exchange reserves, in which there is a lot of trade surplus and FDI, and so created. In the face of constantly updated data on foreign exchange reserves, as well as the subsequent "growth pains", in the past, export-oriented economic policies to attract foreign investment and local government as the most important task of governing ideas need to change. After all, the continued use of the valuable resources and energy subsidies to the world is not desirable. In addition, the national income accounts from the point of view, the trade surplus with the corresponding high savings, and high savings is also the root causes of the economic future of the main expenditure is expected to uncertainty. As a result, the current increase should be related to the livelihood of the people of education, health care and other fields of investment.