China Can Buy 39 Hermes Companies To See Us Debt Through Cash In The US.

< p style= "text-align: center" > img border= "0" alt= "align=" center "src=" /uploadimages/201212/04/2012120411260601583.jpg "/" < < > >

< p style= "text-align: center >" how many "a" href= "http://sjfzxm.com/news/index_f.asp" LV < /a > < /p > China owed by the United States.

< p > as we all know, China holds a large amount of US debt. The latest data is US $1 trillion and 149 billion 600 million, which is equivalent to RMB 7 trillion and 200 billion yuan.

BAZAAR magazine took the LV package as the unit of measurement, and found that this huge sum of money could enable everyone in China to have a a href= "http://sjfzxm.com/news/index_h.asp" > LV package < /a >.

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< p > as the classic style of LV, the price of Speedy30 in France is 540 euros, or about 4400 yuan RMB. After counting the tax rebate, China's US debt can buy 1 billion 636 million Speedy30, 1 billion 300 million everyone has one surplus.

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< p > according to the unit area of Speedy30 30 cm long and 21 cm wide, the 1 billion 600 million bags are put together in an area of 103 square kilometers, which is equivalent to 143 the Imperial Palace area.

If these packages are stacked together, they will be as high as 278 thousand km, equivalent to a greater distance between the earth and the moon.

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< p > in addition, according to the market value of Hermes at the current US $29 billion 100 million, China can buy 39 Hermes companies if it is "a href=" http://sjfzxm.com/news/index_cj.as "> US debt" /a ".

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< p > related links: < /p >

< p > economic recession and years of deficit fiscal policy make the total amount of public debt in the United States continue to accumulate.

In fact, the debt ceiling of the United States had reached its top in May 16th.

The US government's debt ceiling is still $14 trillion and 294 billion.

According to relevant regulations, the United States Congress must reach an agreement on raising the national debt ceiling by August 2nd, otherwise the US government will not have enough cash and the US Treasury bonds will face default risk.

Economists point out that once the most credible US Treasury bonds default, then the international financial market will be chaotic, and the US and the global economy will suffer even more serious than the 2008 financial crisis.

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< p > the loss of 3A rating in the United States will be a watershed event for the US economy and the global financial system.

Unlike default, which may cause a sudden impact on the financial system, downgrading is likely to produce a slow escalating effect, especially by pushing us long-term interest rates over a period of time.

Especially in the United States, the credit rating has been downgraded many times, not just a single downgrade.

Quantifying, the research department of Mcgraw & Hill, the standard & Poor's parent company, said that if the United States lost its AAA rating, investors in the largest treasury bond market would face a loss of up to 100 billion dollars.

The downgrade will lead to higher bond yields and lower prices.

The analysis of S&P Valuation and Risk Strategies, which is independent of the S & P research team, shows that if the US rating is downgraded to AA or A, the price of the 10 - year treasury bonds will decrease by 2% and 3.2% respectively, and the price of the 30 - year treasury bonds will fall 3.9% and 6.3% respectively in two cases.

It also means that the US Treasury will pay more than $2 billion 300 million to $3 billion 750 million a year in order to finance the annual budget deficit of $1 trillion.

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< p > whatever the reasons for the downgrade, it will have an impact on stock and foreign exchange pactions.

The response from the stock market, in turn, will drive interest rates.

Conspicuous fiscal cuts, coupled with rising borrowing costs, may reduce consumer confidence, and the 3A class debt rating, which Americans are proud of, is no longer in existence. All this may make the us fall into a recession again.

This situation will have a serious impact on other countries and regions in the world.

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< p > what serious consequences will the debt default of the world's largest economy bring? What will happen to the global financial market? The US debt default will surely greatly hurt investor confidence.

For the US itself, the US Treasury bond default must be downgraded by the US in the three largest rating agencies.

In this way, no one will be willing to buy US Treasury bonds, which will eventually lead to the credit crisis of the US dollar.

The foreign exchange market has always been the most sensitive market. The most direct chain effect of the credit crisis is that the US dollar has been substantially sell-off, the US dollar has depreciated sharply and the US dollar index has plummeted.

A crisis in the US dollar will weaken the sovereign debt crisis in Europe.

However, the currencies of countries with large numbers of US debt may be hit, for example, the yen.

The risk aversion caused by the US debt crisis will inevitably lead to a sharp fall in both the stock market and the bond market.

Even if the US debt default causes the market to plummet, but as the US remains the most powerful country in the world, and the US economy is not worse than the rest of the world, the depreciation of the US dollar will also help the recovery of the US economy, so the US stock market crash is only a short term phenomenon.

Analysts caution that investors should really worry about other countries with large amounts of US debt.

Gold, silver and other precious metals are once again popular among investors, and gold prices will hit a new high.

In the early days of the US debt default, crude oil, metals, chemicals and agricultural products fell due to the impact of the financial market.

However, with the fundamental shake of the dollar position caused by the US debt default, the real assets will be sought after by investors after a short period of bad release. After all, when the money credit goes down, physical commodities are the best way to preserve assets.

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< p > if the debt ceiling can not be raised in time, then the United States will "technically default" if the cash is not enough to pay its debt liability, that is, temporarily suspend payment.

Under such circumstances, the first reaction of the market may be to dump US Treasury bonds, and yields will soar.

But the current market sentiment does not seem to point to this result.

Analysts believe that the stock market's sensitivity to the financial situation has exceeded the bond market.

Therefore, in the case of "technical default", it may trigger a large amount of cash withdrawal behavior, and the stock market is likely to be sold wildly.

Meanwhile, the default of the US government will seriously damage the credibility of the state and change the market's long-term knowledge of US Treasury bonds.

Overseas investors may question the role of US Treasury bonds as a "safe haven" investment tool.

In the case of technical default, US government spending will still have to shrink.

Such a reduction in expenditure, if sustained until September, will greatly drag down GDP in the US, or even plunge the US economy into a "two recession".

At the same time, if there is a default on US Treasury bonds, it will trigger global financial turmoil, and there will be huge fluctuations in the global bond market and stock market.

In addition, the US dollar exchange rate will fall sharply, which may cause the price of oil and other commodities priced in US dollars to skyrocket, which will cause huge import inflationary pressure.

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