⚠️ Li Ka-shing and Buffett are both seeking safety! A major crisis is brewing in the United States!
What risks do Li Ka-shing and Buffett see that ordinary people don’t?
It all starts with America’s debt crisis.
Why are some people predicting a financial crisis in the United States?
Because in 12–18 months, $10 trillion in low-interest U.S. debt issued years ago will come due all at once.
This debt was borrowed during the zero-interest-rate era, with interest rates of just 0.5%–1.5%. Now, with interest rates staying near 4% for an extended period, repayment costs have surged by 3–5 times.
It’s like owing $100,000 on a credit card. You used to pay just $1,000 in interest a year, but suddenly that jumps to $5,000. The pressure becomes unbearable in an instant.
More importantly, major buyers of U.S. Treasury bonds—including Japan, China, and Saudi Arabia—are all selling them.
America’s model of borrowing new money to repay old debt is close to running out of steam.
Don’t assume the United States can print money without limit.
The dollar’s credibility is fundamentally supported by the world buying U.S. Treasury bonds and using them as reserves.
When the rest of the world no longer wants to buy U.S. debt, the printing press can’t keep running either. U.S. debt is the root of all America’s problems.
The United States played out this same script twenty years ago.
In 1997, it first flooded the market with money, inflating Southeast Asian asset bubbles. Then it sharply raised interest rates, siphoning U.S. dollars back from around the world and causing other countries’ asset prices to crash. Wall Street then swooped in to buy up assets at rock-bottom prices, while dollars flowed back into U.S. stocks, artificially extending the dot-com bubble for another three years.
That round of plundering left Japan’s economy mired in long-term stagnation and turned Europe into a subordinate of U.S. dollar hegemony.
But this time, Europe and Japan are unwilling to be the suckers again.
Here’s something to put your mind at ease:
Even if the coming crisis could be more severe than the one twenty years ago, conditions at home in China are completely different this time.
We have an independent monetary policy, huge domestic demand, ample foreign exchange reserves, a stable energy supply, and manageable overall debt levels. We will not relive the tragedy of Asia-Pacific countries back then.
Ordinary people should focus on protecting themselves, reducing their personal risks, and safeguarding their assets.
No matter how the economic cycle turns, we’ll be better equipped to weather the storm steadily.
#资产避险
What risks do Li Ka-shing and Buffett see that ordinary people don’t?
It all starts with America’s debt crisis.
Why are some people predicting a financial crisis in the United States?
Because in 12–18 months, $10 trillion in low-interest U.S. debt issued years ago will come due all at once.
This debt was borrowed during the zero-interest-rate era, with interest rates of just 0.5%–1.5%. Now, with interest rates staying near 4% for an extended period, repayment costs have surged by 3–5 times.
It’s like owing $100,000 on a credit card. You used to pay just $1,000 in interest a year, but suddenly that jumps to $5,000. The pressure becomes unbearable in an instant.
More importantly, major buyers of U.S. Treasury bonds—including Japan, China, and Saudi Arabia—are all selling them.
America’s model of borrowing new money to repay old debt is close to running out of steam.
Don’t assume the United States can print money without limit.
The dollar’s credibility is fundamentally supported by the world buying U.S. Treasury bonds and using them as reserves.
When the rest of the world no longer wants to buy U.S. debt, the printing press can’t keep running either. U.S. debt is the root of all America’s problems.
The United States played out this same script twenty years ago.
In 1997, it first flooded the market with money, inflating Southeast Asian asset bubbles. Then it sharply raised interest rates, siphoning U.S. dollars back from around the world and causing other countries’ asset prices to crash. Wall Street then swooped in to buy up assets at rock-bottom prices, while dollars flowed back into U.S. stocks, artificially extending the dot-com bubble for another three years.
That round of plundering left Japan’s economy mired in long-term stagnation and turned Europe into a subordinate of U.S. dollar hegemony.
But this time, Europe and Japan are unwilling to be the suckers again.
Here’s something to put your mind at ease:
Even if the coming crisis could be more severe than the one twenty years ago, conditions at home in China are completely different this time.
We have an independent monetary policy, huge domestic demand, ample foreign exchange reserves, a stable energy supply, and manageable overall debt levels. We will not relive the tragedy of Asia-Pacific countries back then.
Ordinary people should focus on protecting themselves, reducing their personal risks, and safeguarding their assets.
No matter how the economic cycle turns, we’ll be better equipped to weather the storm steadily.
#资产避险