Buying U.S. Treasury bonds is a win-win result between China and the United States, or a second-best choice before there is no best choice at this stage. To put it bluntly, buying US Treasury bonds means that China earns too much US dollars by exporting foreign trade (that is, the world factory), and China has foreign capital, all of which are introduced in US dollars; In order to preserve and increase the value, China buys US Treasury bonds.

Buying US Treasury bonds can reduce the pressure of RMB appreciation; Conducive to our exports and increase our employment!

The first power in the United States has the highest national credit; Buying US Treasury bonds is the safest; At the same time, the American financial market is developed and trading is free; Convenient for us to buy and sell! There is also fixed income; Buy American debt in dollars, don't worry about exchange rate risk! Therefore, U.S. Treasury bonds are the safest and the income is stable, so you can't buy Iraqi government bonds!

We hold a large amount of American debt, which can make the United States stop fooling around and let them consider the feelings of our investors, such as not telling monks about things across the Taiwan Strait!

So, of course, I can't represent the government. Personally, I think our country must have been holding US dollar bonds until there is no better investment.

Disadvantages:

That is, the yield of US Treasury bonds is low, the dollar is always depreciating, and the Chinese and American economies are closely tied, so we have to continue to buy US bonds.

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The rise of China's exchange rate will not cause the national debt to shrink; As long as US Treasury bonds are bought in dollars, as long as they are not converted into RMB, there will be no exchange gains or losses. Exchange rate rise refers to appreciation; For example, in the past, the exchange rate of RMB against the US dollar was 8:1; Now it is 6: 1, which means appreciation. We used to buy a hamburger at RMB 8 for 1 USD, but now we only want 6 yuan. Of course, the change of exchange rate is different from our common people's feelings about currency depreciation. Now it appreciates externally and depreciates internally. It appreciates against foreign currencies and depreciates against domestic ones, because the price is getting higher and higher, that is, too much currency devalues.

References:

Please indicate the source of the work of the old uncle in the wheat field.