So far, Americans have released another $1.5 trillion
As of October 13, 2022, the number of US Treasury bond clocks jumped to $31.14 trillion, close to the upper limit of $31.4 trillion. U.S. Treasury bonds increased from $29.62 trillion at the end of 2021 to $31.14 trillion now, an increase of more than $1.5 trillion. Among them, 1 trillion US dollars was printed in the first half of the year alone, which is equivalent to 8% of the GDP in the first half of the United States being printed by printing money. In this way, after deducting the printing factor of money, the nominal growth of the US economy is minimal, and coupled with the inflation factor, it is a negative growth of about 5%. It should be said that the US economic recession is very serious.
Americans Binding reduction will be an eternal empty talk
Judging from the performance in 2022, the Americans' promise to reduce the balance sheet is always just an empty talk! October 2022 has just begun, and the US Treasury bond ceiling of $31.4 trillion is approaching. Will the US government close again? I believe that the rogue America will eventually expand the upper limit. As for reducing the price, it is always a beautiful lie. If calculated based on the current interest rate of 4 points, the United States will pay about $1.2 trillion in interest throughout the year, so most of the money printed since 2022 is used to pay interest on Treasury bonds. It seems that Americans do not intend to repay their principal. To put it nicely, for the holders of US bonds, it is considered to be a big deal for Americans to pay interest on treasury bonds.
U.S. U.S. interest rate hike U.S. 1
U.S. interest rate hike is unsustainable. Judging from the current situation, even if the United States puts extreme pressure on the world and adds interest rates twice, it will basically reach a high point. At that time, if inflation fails to effectively alleviate, it will have a serious impact on the US economy, and a recession is a high probability event.
You should know that while Americans raise interest rates against the cycle, it leads to a sharp appreciation of the US dollar against all currencies. The inflation in the United States has eased, but inflation in other countries is intensifying; on the other hand, the United States prints money and releases money, continuing to endanger the world, regardless of the life or death of other countries. EU countries are destined to be very cold this winter, which has become an indisputable fact. The Ukrainian war escalates at any time, and the United States has made an indelible contribution. It seems that only by de-dollarization can we suppress the arrogance of Americans.
After the US rate hike reaches its peak, it will inevitably enter a cycle of interest rate cuts, and this cycle will be an acceleration period for de-dollarization all over the world, and it is not ruled out that the US dollar will depreciate in a phased manner. Compared to the interest rate of several points, going to the US dollar should be a better choice. Once many countries go to US debt and US dollar at the same time, it will be a catastrophe for the United States.
The current US bonds are replaced by yen and euros . It seems more secure.
. It seems that both the yen and the euro have entered a stage low point, and there is a possibility of bottoming out and rebounding at any time. Compared with the expectation of weakening of the dollar index , swapping the US dollar for yen and euro should be a good choice.
