US Debt Crisis Affects Geometry

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< p style= "text-align: center >" the US debt deadlock causes global concern "/p >

The United States has reached an agreement on the resumption of the operation of the government, but at the beginning of next year, it will probably fall into a spending dispute, /p P.

Obama, President of the United States, signed the bill passed by Congress on the evening of 16, which made the bill a formal law to ensure that the federal government reopened the door and extended the US debt ceiling to February 7th next year. P

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P > if Congress fails to raise the debt ceiling by October 17th, the US government will not be able to fulfill its obligation to pay, resulting in the US debt default.

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< p > < a href= > http://sjfzxm.com/news/index_cj.as > American debt > /a > deadlock affects the nerves of most countries and regions in the world.

In response, the group of twenty issued a statement saying that the United States should take immediate steps to resolve financial uncertainties in the near future.

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Taro Aso, Japanese finance minister, has also shown that if the United States has a debt default, the US government bonds held by other countries and used as collateral for financial pactions may become P worthless.

This is not just the problem of the United States itself, it may have a major impact on the global financial market.

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< p > China also expressed concern about the debt problem of the United States.

Zhu Guangyao, Vice Minister of finance of China, said that the Chinese side requested the US side to take effective measures before October 17th to resolve the dispute over the debt ceiling in a timely manner so as to prevent the default of US Treasury bonds and ensure China's investment in the US.

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After the agreement reached on the debt deadlock in the United States, the global economy relaxed, but the problem has not been solved thoroughly. The debt deadlock has not yet been reached, and the global worries about US debt remain. P

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< p > < strong > US debt crisis: the global debt problem of the United States < /strong > /p >

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< p > 1971, former US Treasury Secretary John Connelly said a famous saying: "the dollar is our currency, but it is your problem."

More than 40 years later, the status of the United States remains unchanged. The US government is mainly responsible for the internal affairs, and it does not care much about the demands of other countries in the world.

The global debt concerns caused by the US debt deadlock are also the same: the US debt is the global debt problem of the United States.

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< p > the United States can become the world's major reserve currency issuing country, which is the result of the global recognition of the comprehensive national strength.

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< p > for a long time, the Chinese government has always believed that US Treasuries are the safest and most liquid assets in foreign exchange reserve investment. The largest proportion of China's foreign exchange reserve investment is US Treasury bonds.

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In June 2010, about 45% of China's foreign exchange reserves (about US $1 trillion and 110 billion) were invested in US Treasury bonds. P

Since then, China's purchases of US debt have increased, but the proportion of US Treasury bonds to China's foreign exchange reserves has declined steadily.

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As of the end of 9 this year, China's foreign exchange reserves amounted to US $3 trillion and 660 billion, of which a large proportion were used for investment and purchase of US dollar assets. P

At present, China holds US Treasury bonds of US $1 trillion and 270 billion, and is the largest single holder of US Treasury bonds.

Roughly speaking, US Treasury bonds currently account for about 1/3 of our foreign reserves.

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< p > if the US default, the fall in the price of treasury bonds will cause great losses to China's foreign exchange reserves.

What is more important is that such a huge amount of capital will not be absorbed by any other market once it leaves the US debt market, and the central bank's centralized sell-off will bring down the US debt and make the central bank suffer losses.

Therefore, for the Central Bank of China, there is almost no help for the US debt crisis. Holding and watching the US debt deadlock is probably the best strategy. It is not necessarily a massive sell-off.

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< p style= "text-align: left > > strong > the US debt crisis has made the RMB exchange rate rise. China's exports worsened" /strong > /p >

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< p style= "text-align: center >" experts said that the RMB exchange rate rose more than 3% this year, and the export enterprises basically did not earn money < /p >

For a long time, exports have been a pillar of China's rapid economic development. The high trade surplus has resulted in a large accumulation of foreign exchange reserves. P

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< p > in recent years, the rise of land, raw materials and labor wages has weakened the low cost advantages of China's manufacturing industry. On the other hand, the rapid appreciation of the RMB exchange rate has further weakened the price advantage of China's export products.

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< p > July 22, 2005, according to the announcement of the central bank, the RMB exchange rate was priced in reference to a basket of currencies, and the value of the RMB exchange rate was 1:8.11 at a one-time appreciation of 2%. On that day, the RMB exchange rate began to appreciate and the RMB exchange rate against the US dollar has appreciated by 35%.

Since the beginning of this year, the RMB has appreciated more than 2.1% against the US dollar, more than the annual increase of 1% last year.

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< p > before and after the debt agreement was reached in the United States, the US dollar weakened completely, and the Federal Reserve postponed the quantitative easing measures to reduce the time, which caused massive capital inflow into China. The RMB has reached a record high for several consecutive trading days.

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In September, for example, the RMB appreciated the pressure of unilateral appreciation against the US dollar, which rose by 3.04% over the same month, setting the biggest record of the rise of RMB against the US dollar since 2013 in 2013.

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"P" China's exports fell 0.3% in September, far below market expectations.

< a target= "_blank" href= "http://www.91se91.com/" > clothing < /a > a target= "_blank" href= "http://www.91se91.com/" > textile > furniture > and furniture and other key export commodities have dropped markedly.

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At present, China's manufacturing industry is still in the low end of the international industrial division system, and its comparative advantages are mainly concentrated on labor-intensive products. P

Once the rapid appreciation of the RMB exchange rate will have a negative impact on the profits and sales volume of export enterprises, it will create a new blow to the export industry which has already been in a difficult situation.

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