As the rate cuts began, Japan dumped US debt in large quantities, and China also shipped back gold. Buffett had an ominous premonition! !
Europe began to implement a rate cut policy, while Japan sold US bonds one after another. What was the motivation for this move? At the same time, China was actively cleaning up its US debt and turning to increasing its gold holdings. What was China's intention? In this situation, the famous investment tycoon Buffett expressed a less optimistic view.
"The stock god" Buffett recently expressed concerns about the debt risks of the United States. He made a prediction last month that the US government is likely to respond to the growing fiscal deficit by raising taxes instead of cutting spending. Although the market is currently focusing on what measures the Federal Reserve will take to fight inflation, fiscal policy may face more challenges.
The United States attaches great importance to the sale of US debt. The reason is that the United States is worried that the risks of US debt will increase further. In fact, the United States' concerns are completely self-inflicted. If the United States does not politicize economic issues, resulting in the repeated decline of the credibility of the US dollar, the US debt problem will not be as difficult as it is now. For example, after the outbreak of the Russian-Ukrainian conflict, Western countries led by the United States kicked Russia out in order to sanction it, froze Russia's huge overseas assets, and even tried to take these assets for themselves. This kind of bandit-like behavior has been seen by the international community. In addition, the Federal Reserve has continuously raised interest rates and used the hegemony of the US dollar to plunder the world. It is these operations that have greatly reduced the international credibility of the US dollar. Now in the cognition of many countries, the US dollar is no longer a safe safe-haven asset. Holding too much US dollars is considered dangerous, and de-dollarization has become a consensus. At the same time, while China is accelerating the sale of US bonds, it is also shipping back a large amount of gold. The purpose is not only to combat the hegemony of the US dollar and promote the internationalization of the RMB, but also to avoid risks.
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