The United States Is Sick In China, Injections Of &Nbsp; Interest Rates Must Be Increased To Adjust The Structure.

In 1999, on the eve of legendary Lubin resigning from the position of US Treasury Secretary, his then subordinate and current US Treasury Secretary, Geithner, rose for a moment, and summed up the so-called "farewell" as a farewell ceremony.

More than ten years later, shy Geithner sat on Lubin's position, even though he publicly denied the danger of default.

But the theory he summed up ten years ago, and the downgrading of US sovereign credit, should remind American creditors including China: the reality is very cruel, and the creditors are very dangerous. If the US debt is difficult to continue, China's responsibility will not be ignored.

This is actually a sign.

For example, when reflecting on the 2008 international financial crisis, some US rightists argued that the main reason for the outbreak of the crisis was the imbalance of international economy, while China's trade surplus, high savings rate and massive borrowing from the United States aggravated the problems of the United States.

In the US debt dispute, some American politicians are more

If China borrows its debts, it will be much more serious if it is voluntarily involved in the US debt crisis one day than the private creditors who are now deeply involved in the Greek crisis.

After all, China has more than 1.1 billion dollars of US Treasuries and about 300000000000 US institutional bonds.

Debt repayment is perfectly justified.

But the reality is: strong borrowers have signs of cheating, and they are righteous.

So what should creditors do?

There are mainly three choices in China in the passive situation.

First, efforts should be made to repay debts.

Unfortunately, in practice, this is unrealistic.

Borrowing is like throwing water, especially when it comes to borrowing the world's most powerful American debt.

The reason why the United States can repay money on time is to maintain credit and borrow more money.

If one day, China says that debts must be liquidated, the principal must be returned. Can the United States agree?

Will it be poor?

Countermeasure two, continue to lend money and seek peace of mind.

This is actually China's current practice. Since the two countries are "sharing the same storm", the United States is bankrupt and China is also suffering, then continue to lend money to the United States.

The United States is pleased that China's policymakers are also worried.

But this practice obviously ignores reality and leaves behind great hidden dangers for future generations.

As mentioned above, the higher the US debt is, the harder it will be.

Once there is a problem, the loss of China in the "dollar trap" will be astonishing.

Strategy three,

The success of the "intermediate approach" actually tests China's three abilities:

First, test China's investment ability.

That is to say, in terms of diversification, whether we can buy real high-quality assets, whether we can ensure the safety and value added of foreign exchange reserves, and if we buy junk assets, it is not as safe as US Treasury bonds.

The two is to test China's ability to stimulate domestic demand.

To change the excessive growth of foreign exchange reserves, there must be truly effective measures to stimulate domestic demand, while accelerating financial reform and avoiding making money for the United States.

The three is to test China's diplomatic capability.

China has huge US Treasury bonds, which is China's burden but is also the weakness of the United States.

In the game with the United States, can we turn it into China's bargaining chip instead of being targeted by the US?

Of course, diversification is undoubtedly a bumpy road, which requires energy and risk. Even the parties may face misunderstanding and pay a heavy price. But for the benefit of the whole country, this road needs to go out.

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