Opponents are selling, allies are selling …

In early autumn, many analysts predicted the United States a possible default or the printing press launch.

And so, the autumn has passed, but nothing bad has happened so far. However, large U.S. government debt bondholders remain concerned. This is evidenced by the fact that a number of countries were selling US government bonds.

Thus, Japan, which is the largest lender in the United States, sold American securities for nearly $ 30 billion. One of America’s main rivals in the military-political sphere, China, does not lag behind this trend. Beijing as well as Tokyo is actively selling US securities.

According to the results of the autumn sale, the most significant lenders of the American economy – Japan and China left themselves $ 2.23 trillion worth of US securities. Of these, the People’s Bank of China has bonds of 1.11, and the Bank of Japan – of 1.12 trillion.

Thus, in the fall of this year, the outflow of investments in the US public debt was a record in recent years. The net outflow of foreign capital amounted to more than 34 billion dollars.

One of the main reasons for such a sharp disposal of dollar assets is the unleashed trade war between Washington and Beijing. Inspiration for investors is not added to the constant demands of Donald trump to the Federal Reserve on the weakening of the dollar.

In addition, the US Federal Reserve began to buy American bonds from the market, filling the economy with unsecured money. The head of the Federal Reserve Jerome Powell assured that the regulator is not going to stimulate economic growth, but seeks to control short-term rates.

Such manipulations suggest that the American government most likely decided to re-enable the printing press. And multibillion-dollar bonds will be redeemed for „dummies.”

Many investors, following the example of China and Japan, may lose confidence in the dollar and transfer their investments into more stable units – for example, gold or euro. If the dumping of US bonds continues to have a massive character, this will obviously lead to a collapse in their value, which will result in a panic in the market and a significant depreciation of the US currency.

Authorship: Vitaliy Timoschuk
Photo: JESHOOTS (CC0)
Source: WolneMedia.net