The Central Bank Rarely Issued &Nbsp In The Morning; Urged The United States To Be Responsible.

Zhou talked about US debt and urged the United States to "be responsible".

In August 2nd, President Obama finally relieved herself of the signing of the 2011 budget control act passed by the US Congress.

The US deficit ceiling issue was temporarily extinguished at the last minute before the detonation.

Zhou Xiaochuan, governor of the people's Bank of China, then made a public response to this. From the time when the central bank website was published, it was Beijing time zero 50 on August 3rd.

Zhou Xiaochuan welcomed the progress made by the United States to raise the debt ceiling, and expressed deep concern about the security issue of US debt investment.

As the largest creditor country of US Treasury bonds, the large proportion of US dollar assets has been the soft rib of China's huge foreign exchange reserves, just like what Connally, the then US Treasury Secretary, said 40 years ago, "our currency, your problems".

In fact, the United States

However, in Rodgers's words, "the US sovereign debt has lost its AAA rating. Who cares what Moodie says?"

China's rating agency Dagong yesterday decided to reduce the US national and foreign currency credit rating from A+ to A, and the outlook is negative.

Zhou Xiaochuan's first timetable worries

For the Senate and house of representatives of the United States Congress passed the budget control act 2011, Zhou Xiaochuan responded by answering reporters' questions, "we will further study and maintain close attention to the specific contents of the bill and the phased implementation process."

The answer was almost the first time after the passage of the bill.

According to the agreement reached between the two parties of the United States, President Obama is allowed to increase the total debt ceiling of 2 trillion and 100 billion to 2 trillion and 400 billion dollars in three steps. At the same time, the government needs to cut at least 2 trillion and 100 billion dollars in 10 years.

Zhou Xiaochuan said the US Treasury bond market.

As of May 16th, the total public debt of the United States was 14 trillion and 290 billion.

The US treasurer ranked first in the US social security trust fund, accounting for 19%, second in the US Treasury Department, accounting for 11.3%, and third in China, accounting for 8%.

China is the largest economy with us debt.

According to foreign reports, China has shown a more restrained attitude towards the US debt politics show.

However, last Thursday, China's official Xinhua News Agency sent two articles, which severely criticized us leaders for putting the world economy in jeopardy. This is also one of the strongest wordings of the Chinese government's debt problem so far.

Analysts pointed out that China used to think that the United States was a strong and responsible country in the global economic affairs, but the debt farce was a major blow to the above understanding.

Dagong lowered US rating

"Sovereignty of the United States"

Dagong International said, "although this decision (the two parties reached an agreement in the US) can enable the government to continue borrowing new debts, it has not changed the general trend of the growth of national debt over the growth of economic and fiscal revenues. This incident has become an inflection point for the US government to further reduce its debt paying ability."

Dagong has firmly adjusted the US rating. It believes that the US fiscal deficit reduction rate is far below the growth rate of the new debt growth. The fiscal policy that will not support will continue to push the US government debt level up, and the state's debt paying ability will decline irreversible.

In fact, Dagong lowered its US credit rating to A+ in November last year, and the initial assessment of the US national credit rating is only AA.

The long-term crisis of US Treasury bonds seems to be clear at the moment, and China's demand for changing the domestic economic structure and development mode is even more urgent.

"From the domestic point of view, we will take effective measures to maintain steady and rapid economic growth and safeguard China's economic and financial security."

Zhou Xiaochuan said.

Morgan Stanley Asia's non-executive chairman, Stephen Hroch, pointed out that the significance of adjusting the economic structure in China's "12th Five-Year plan" is here. "By increasing the proportion of consumption in GDP, China will absorb its savings surplus."

In 2015, this will bring its current account balance or lead to a slight deficit.

This will sharply reduce the pace of foreign exchange accumulation and weaken the unlimited demand for assets denominated in US dollars. "

External storage dilemma is still difficult to understand

"Foreign exchange reserve management will continue to adhere to the principle of diversified investment, strengthen risk management, and minimize the negative impact of fluctuations in international financial markets on China."

Zhou Xiaochuan made the above statement on the US debt issue.

This is also the concern of the domestic community to the US debt crisis. Although the Central Bank of China has not announced the specific composition of its foreign exchange reserves, as of the end of 6 this year, the balance of our foreign exchange reserves is as high as US $3 trillion and 197 billion 500 million.

According to market estimates, the proportion of US dollar assets in China's foreign exchange reserves is 60%~70%.

According to foreign media estimates, if China holds at least 20% of its US Treasury bonds, it will lose about 230 billion dollars, equivalent to a loss of more than 170 US dollars per capita in China.

"A large proportion of the US government expenditure is in medical insurance, social security and military purposes. These big expenditures are hard to cut down, and the economy has no new growth point. In the long run, it is possible that the income will not meet the expenditure."

Zong Liang, deputy general manager of the Strategic Development Department of Bank of China, pointed out.

Tan Yaling, Dean of China Foreign Exchange Investment Research Institute, said: "how can the US debt problem be solved?

Its total economic output in 2010 was only 14 trillion and 620 billion.

In addition to the existing nearly $10 trillion outstanding debt, the US has a net current value of US $66 trillion in forward liabilities.

Zong Liang believes that China's strategy should have long-term strategic arrangements. First, we should actively promote the reform of the international monetary system and change the state of the currency system which is too dependent on the US dollar.

Two, we should promote the internationalization of RMB and make the Renminbi the main international currency.

Three, we should adjust the structure of foreign exchange reserves, including monetary structure and asset structure.

On the one hand, the currency should be diversified. On the one hand, the main assets can be diversified, including gold, and the diversification of objects. Both the US Treasury bonds and other State bonds will weaken their dependence on the United States.

Analysts believe that when the US dollar centric monetary system has not really broken down, countries may be more willing to adopt a conservative attitude to maintain the status quo, so as to avoid taking the huge cost caused by the initiative to destroy the system.

"Even if the credit rating is down, what can we do?"

Tan Yaling believes that because of the efficiency of the financial market, the quality of products and the evasion of risk, they are much better than other markets.

So when we choose the assets of the United States, it is both a helpless choice and an inevitable choice.

Zong Liang believes that after the US rating is lowered, the US credit will decline. If there is a significant depreciation of the US dollar, China will suffer a lot of losses.

The quality of China's foreign exchange reserves will change, and the risk weights of assets will also be changed.

"Theoretically, China should turn the creditor's rights into the real assets of the United States as far as possible, such as ports, military, or large companies like Boeing.

But the United States will not sell out on the grounds of national security, and China's creditor's rights will not be pferred.

Now the economy of the United States has eased over the 2008 financial crisis, and the best time to negotiate is not now. "

Zong Liang said, but did not rule out the possibility of further exploring these issues in the future.