Chinese experts fear that the holders of the US government debt (Treasury) in the near future will have to pay extra for US government bonds. The reputation of the United States is known to everyone, writes the Chinese newspaper Sohu. Americans have always sought to maintain a leading role not only in the political, but also in the economic sphere.
But recently, the countries holding the US national debt have been concerned about the Fed’s policy – the Americans are rapidly increasing the volume of paper stock. That is, they constantly print dollars. If the speed of money printing remains at the current level, the Fed’s balance sheet will reach $ 20 trillion by 2028. As previously reported by the American media, based on information received from the Fed, for the week ended September 20, the Fed already had $ 7.09 trillion on its balance sheet. dollars, just a week earlier this figure was equal to 7.06 trillion. dollars.
Recently, several senior Fed officials said they would support a loose monetary policy and would do whatever they could to stabilize the US economic situation.
“And at some point, it may turn out that the Fed may introduce negative rates to save its economy. This means that the main holders of the US national debt, such as China, Japan and Germany will have to pay the Americans for their own debt securities. “
As the newspaper notes, this will negatively affect the US image. And no country in the world wants to do anything with them anymore. The Southern Federal edition reminds that the main holders of US government bonds as of June 2019 were Japan, followed by China, and the third by Great Britain. Germany is on the 20th line in this list. Russia is not included in this “twenty”.