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As one of the world's great powers, the United States' every move has been followed by countries all over the world, and Japan, as one of the most loyal younger brothers of the United States, has always pursued the principle that we will do whatever our big brother does, and we will do whatever our big brother asks us to do, but in recent days, Japan has suddenly "stabbed the United States in the back" and began to sell US bonds by a large margin.
This has to mention Japan's big brother the United States, the United States is worthy of being a world power, there are certain means of intervening in the currency, in recent years, it has been harvesting currency by raising interest rates and then cutting interest rates, and recently, the United States has used the old method to harvest a wave of Asian currencies, and Japan as an Asian country has borne the brunt.
Seeing that the yen exchange rate continued to fall, the Bank of Japan threw out 980 million foreign exchange reserve funds in order to save the yen market, and with the efforts of the Bank of Japan, the yen exchange rate was raised to about 155.
Later, in order to stabilize the yen exchange rate, it sold 37.5 billion U.S. bonds in April this year, and finally stabilized the yen exchange rate at about 155, but Japan's move also caused dissatisfaction in the United States, and the United States included Japan in the foreign exchange reserve monitoring list.
Canada and the United Kingdom have made the same choice as Japan, Canada does not seem to have a strong sense of presence in political discourse, but in order to curry favor with the United States, it actively sanctioned the mainland, and everyone should remember that in order to sanction the mainland Huawei company, Canada violated morality and directly arrested Huawei's eldest lady Meng Wanzhou.
Although Meng Wanzhou was finally released after stern negotiations on the mainland, he still wore electronic shackles on his feet when he returned home, and just recently expelled a consular officer from our side.
Britain is the little brother of the United States, like Japan, although it used to be known as the empire on which the sun never sets, but now it can only turn to the United States, and it is reported that Britain sold $17.9 billion in US bonds in April this year.
According to statistics, these three countries have sold 80.1 billion U.S. bonds so far, and many people may ask why they are selling U.S. bonds, is it because the United States can't do it or other reasons? That's complicated.
People who like to speculate in stocks should know that Warren Buffett has made a lot of investments in the United States before, and in the end, as expected, he has gained a lot, but recently Buffett has been investing in Japan, and Buffett's actions show that he is not optimistic about the American market now.
In fact, the U.S. domestic market is sluggish as Warren Buffett expected, the data shows that U.S. retail sales in April were -0.2, and in May they grew by 0.1%, far less than expected, partly because high interest rates in the United States have increased the spending burden on the American middle class.
With the increase in the number of immigrants in the United States, many jobs in the United States have been robbed, resulting in an increase in the unemployment rate of local residents, and American residents can only rely on credit cards for consumption, but the follow-up has not yet brought an impact on the United States finance, and at the same time, the inflation problem in the United States is becoming more and more serious.
In order to solve these problems, Goldman Sachs gave a solution, suggesting that those low- and middle-income households consumption-related stocks to him short, this suggestion was deeply agreed by Barclays, they through a detailed investment research report, clearly recommended shorting 10-year US Treasury bonds, and a Wall Street quantitative company clearly said that it is currently doing 5 to 10 years of US Treasury bonds.
You must know that this company is at the forefront of the United States, and their return this year has reached 14%, which is more than 94% of similar funds in the market, so their view is worthwhile.
Speaking of which, some compatriots may not understand, the employment rate and economic data released in the United States are very good, so why should it be recommended to short? In fact, the data released by the United States now has a certain amount of moisture, and when taking the employment rate as an example, the United States completely relies on the independent response of American residents when it counts the employment rate.
In recent years, due to the decline in the response rate of American residents due to the epidemic, the stability has also deteriorated, so the data is not very accurate, and secondly, although the final value of the revised economic growth rate in the first quarter of the United States is only 1.4%, which is lower than the estimated level, it is a very correct decision to short the United States at this time.
Just when everyone thought that the United States would adopt Goldman Sachs' suggestion, they did not expect that US Treasury Secretary Yellen began to issue $69 billion in US bonds.
In addition, the Palestinian-Israeli conflict, Israel's bombing of civilians in Gaza has caused Gaza to mourn all over the country, in fact, the United States is also behind the scenes, so it has caused dissatisfaction among people all over the world, and even when the United States held the G7 meeting in Italy, the Italian people held posters to publicly express their dissatisfaction with the United States, and what the United States did made people all over the world afraid.
Therefore, more and more countries are de-dollarizing and selling US bonds, and the mainland has sold more than 400 billion US bonds in a row in recent years, and this year the sale of US bonds is also going on. Therefore, it is actually an unwise choice for Yellen to issue U.S. bonds at this time, because the U.S. bond market is oversupplied now, and the price will definitely continue to fall for a period of time in the future.
Yellen explained that the effect of controlling domestic inflation is achieved through the issuance of U.S. bonds, but analysts are not optimistic about the effect of the Federal Reserve in controlling inflation.
That is, the currency harvest causes other countries to start selling US bonds, so that the value of US bonds may fall, resulting in insufficient dollar liquidity in the United States, insufficient purchasing power of US residents leading to a market recession, and the US economy is largely dependent on the tertiary industry, so it will have a certain impact on the US financial industry.
All in all, the United States is currently facing the current situation, and it is completely to blame, as a major country in the world, it does not want to maintain world stability, but continues to do some disgusting things, which has caused the people around the world to be dissatisfied with the United States day by day, and it is really a good hand to play a bad hand.
What do you think about U.S. Treasuries? Welcome to discuss in the comment area!
Information sources:
Financials: U.S. retail sales rose 0.1% month-on-month in May
Guangming.com: The unprecedented rescue efforts are difficult to cover the huge interest rate spread, and Japan's "defending the yen" action has had little effect