It may lead to a sharp drop in the price of US debt. Selling American debt means that the cooperation and exchanges between the country and the United States in the international market will be reduced, which will hit some international investors to some extent. A little carelessness in confidence in American debt may lead to the total loss of their investment. According to relevant statistics, some small and medium-sized international multinational companies have lost about 30%~50% in investing in American debt after selling American debt, and large multinational companies have also lost about 20% in investing in American debt.
The sale of American debt may also devalue the dollar. 19 countries * * * The fundamental reason for selling the United States is that the US Federal Reserve announced that it would raise interest rates by 75 basis points, which would enhance the currency value of the US dollar to a certain extent, while other countries had to find ways to reduce the value of the US dollar and improve their own currency value rate. Therefore, after selling the US debt, the currency of the US dollar will have a downward trend in a short time, but is the specific value of the US dollar rising or falling? It should be decided according to different financing costs and the US debt investment situation where multinational companies are located.
It may push up the market price and interest rate. After selling American bonds, the price of American bonds will plummet, while the yield will appear the opposite phenomenon and soar to the highest, so the bond prices and yields of various countries will reach a very high peak, which is very beneficial to all countries and can promote the rise of prices and interest rates in the international economic market.
Generally speaking, the war of selling America may have some negative effects on the United States, but it will have many beneficial effects on the economic development of other countries or China, the root of which is that it can improve the currency preservation rate of a country.