China has significantly reduced its holdings of U.S. bonds, instead acquiring over four thousand tons of gold, causing panic among Americans!

Since the 21st century, the economic relationship between China and the United States has maintained a balanced state of competition and cooperation.

Frequent trade between the two countries has sustained a mutually beneficial economic exchange.

However, after several rounds of trade wars, this balance has been disrupted by the U.S.'s attempts to counterbalance China's development, leading to increasing friction in trade, finance, and other areas.

The U.S.'s intentions to provoke disputes are evident, and the Federal Reserve has repeatedly attempted to short the Chinese yuan through interest rate hikes, ultimately aiming to collapse China's economy.

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In response to this predicament, the central bank will not sit idly by.

While reducing the trade volume between China and the U.S. year by year, the central bank has been selling off its U.S. bonds in large amounts, launching a counterattack against the U.S.'s various actions.

So, what is the deeper meaning behind these measures by the central bank?

With the U.S. issuing a massive amount of national debt today, what impact can the central bank's actions of selling U.S. bonds have on the U.S.?

Before understanding how much impact the central bank's series of countermeasures can have on the U.S., it is necessary to trace back to the history of U.S. national debt.

Surprisingly, the U.S., which prospered by profiting from wars and selling weapons, is actually a country that is good at being in debt.

As early as 1776, when the U.S. was still fighting the Revolutionary War, it began issuing its first national debt.

With this debt, which could be considered a form of "crowdfunding," the U.S. gained independence.

However, as the country grew stronger, the U.S. government gradually became unable to afford the expenses needed for the country's operation.

To make up for this part of the money that the government could not provide, the U.S., like ordinary people, decided to borrow from the outside world.

Unlike ordinary people who can only borrow from relatives, friends, or banks, U.S. national debt is open to the world, with creditors not only including ordinary Americans and banks but also governments of various countries.

With these funds, which are essentially loans under the name of national debt, the U.S. has been able to repay its pressing old debts and postpone the current fiscal crisis to the future.

To date, the U.S. has issued more than 32 trillion in national debt, meaning that the U.S. government has already shouldered more than 30 trillion in massive debt.

No one would want to be burdened with debt, and in order to repay these debts on time, the U.S. is desperately looking for more financially robust creditors globally.

Among the various U.S. bonds, the 30-year U.S. Treasury bonds offer the most benefits.

However, the most benefits also mean that the principal of the bonds purchased will only be returned after thirty years.

During these thirty years, the U.S. government will only pay a certain amount of interest to the creditors monthly.

But it is precisely this "stable income" provided by the U.S. government according to the agreed-upon time and the principal returned on time after thirty years that has made U.S. Treasury bonds famous among all bonds globally, and has become a stable and reliable financial product.

Gradually, U.S. Treasury bonds have become another form of currency and, due to their added interest value, have been able to circulate and trade in the world's securities markets, also welcomed by global investors.

Among the many investors, China is the largest buyer of U.S. Treasury bonds.

China's foreign exchange reserves have been the highest in the world for nearly 20 years, but despite having three trillion in foreign currencies, this money cannot be used domestically in China.

At this time, using this foreign exchange to purchase U.S. Treasury bonds with high creditworthiness and that can be traded at any time is a good choice.

Therefore, 30% of China's foreign exchange reserves have been used to purchase U.S. Treasury bonds.

The financial market is unpredictable.

After becoming the largest creditor of the U.S., the Chinese government did not expect that the U.S. would resort to desperate measures to deal with its enormous debt.

The U.S. government has not only reduced the interest on its bonds for ten consecutive years but also attempted to repay its debts by printing more dollars.

However, this behavior has led to severe inflation and has made the risk of U.S. bonds far exceed their returns.

Gold is the most natural currency, and in the current situation where the dollar, which has dominated world trade for nearly a century, is frequently causing trouble, the central bank will naturally choose to sell off U.S. bonds with distant repayment prospects and bring back more valuable gold and silver.

At this time, the U.S., which has lost its largest creditor, is panicked.

Because if a major country like China abandons U.S. bonds, the remaining investors will not spend money foolishly to buy bonds.

This leads to a decrease in the U.S.'s bond revenue, and one day, it may not be able to repay its current debts.

Even though the U.S. has tried hard to win back China, sending diplomatic ministers to China for two consecutive months, the U.S.'s actions such as provoking disputes in the South China Sea and initiating trade wars have already closed the door to friendly cooperation between the two countries, and its frequent interest rate hikes have lost the trust of the world.

How the future will develop, the U.S. can only take care of itself.

The U.S. has frequently waged wars abroad, interfered in the internal affairs of other countries, and transferred its economic difficulties to the world.

Relying on these "harmful tricks," the U.S. has been able to maintain its position as the world's hegemon.

However, from the unchallenged authority after World War II to its current decline, the U.S.'s path of hegemony has not only brought profound disasters to the people of the world but has also brought endless hidden dangers to itself.

When China repeatedly takes action to sell bonds, the U.S., which is burdened with trillions of dollars in debt, is immediately panicked and sends out various experts to try to win back China, this "wealthy and powerful" business partner.

However, the current economic situation in the U.S. shows that the U.S. economy is already at its last gasp.

The problems within the U.S. will one day erupt, dragging the world economy down with it.

Faced with this huge American ship that may sink at any moment, wise Chinese people will naturally choose to withdraw in time and not sink with the U.S.