Original source: Baidu Author: China "economic experts" finishing Note: Uncle Red Horse
China's "economic experts" say this:
The current paper currency issuance system is that a country's government issues paper currency according to its own laws, and it is forced to circulate. It cannot circulate outside its own country, and other governments have no obligation to create conditions for its circulation.
The nationals or governments of other countries are willing to hold and keep the currency of other countries simply because they need the currency of that country to buy their goods. Only when the country's economy is developed and its currency is used for many purposes will other countries be willing to own its currency. The United States is the most economically developed country in the world and has an absolute advantage in the international monetary and financial system. Therefore, the US dollar is the pricing currency of the international economy and the main means of foreign exchange reserves.
The US Treasury bonds purchased by China were purchased with foreign exchange earned by China in international economic activities (including foreign trade). After China's goods are converted into dollars, there is no interest in their hands. Only by depositing them in American banks (Euros in European banks) can they get interest (that is, income), otherwise such a large sum of money is a huge waste.
The yield of China's purchase of US Treasury bonds is much higher than the deposit interest, which is also a helpless choice when China's balance of payments greatly exceeds it.
US Treasury bonds are similar to China's, with different maturities of three months, six months, one year and three years. It is sold publicly in the securities market (not by borrowing money from someone as an iou), and the US government has the responsibility to redeem it after maturity. If the U.S. government doesn't pay for the maturing national debt, its credit rating will be lowered, and no one will buy its bonds in the future, which is equivalent to blocking the road.
Therefore, when the People's Bank of China opens an account in the US bond market, it can buy US Treasury bonds, just as it is convenient for us to buy stocks in China now.
Of course, if there is a war between China and the United States, the United States will regard China as an enemy, freeze China's creditor's rights, and take the opportunity to default. Therefore, to buy US Treasury bonds, we must first consider political security (Uncle Hong Ma's brief comments: Therefore, China's "elites" have repeatedly stressed that today's China should be as "friendly" as possible with the United States under "any circumstances", and must never fight with the United States and never become an "enemy country" of the United States ...); Secondly, we should also consider economic security, whether there is a problem with the American economy and the possibility that its bonds will become waste paper. To eliminate these risks, we should also consider a series of issues such as liquidity, value preservation and appreciation. (Uncle Red Horse's brief comment: In other words, China must never intend to take back all or most of the 300 tons of gold and trillions of dollars "stored" in the United States. A small amount of "reduction" can be done, but a large amount of "realization" can't; If China dares to "plan" to quickly sell all or most of the "US Treasury bonds" as cash, the United States will turn China into an "enemy country" under various pretexts and immediately declare "freezing China's creditor's rights".
(China government and "economic experts") After many considerations and trade-offs, it is relatively safe to buy US Treasury bonds, but our huge foreign exchange reserves have to be placed in this unsatisfactory investment place.
Obviously, if the price of US Treasury bonds falls, our foreign exchange will suffer, the dollar will depreciate, and so will our foreign exchange. This is why there are international comments that the United States has kidnapped China's economy. (Uncle Red Horse's simple comment: This is the "big truth"! -The question is how should China "choose" to deal with the depreciation of the US dollar and the decline in the price of US Treasury bonds? If China dares to "plan" to quickly sell all or most of the "US Treasury bonds" as cash, the United States will turn China into an "enemy country" under various pretexts and immediately announce "freezing China's creditor's rights"; Only by continuing to "increase holdings" and helping the United States tide over the "economic crisis" can we continue to maintain "friendly relations" with the United States ...)
However, China's foreign exchange surplus is getting bigger and bigger, and foreign exchange has not been spent and saved quickly. If such a large sum of money is invested in other properties in the United States, it will inevitably have a great impact on the American economy, and the American government will impose strict restrictions. At the same time, the liquidity of these properties will be much worse than bonds. (Uncle Red Horse's simple comment: This is another "big truth"! -China's "economic experts" and "self-styled elites" are exposed! )
Weighing the two evils and choosing the lesser one, I had to endure a stomachache and adopted a helpless way to buy US Treasury bonds. (Uncle Red Horse's brief comments: This is the "cleverness" and "cleverness" of China's "economic experts" and "self-proclaimed elites"! )
Second, about China's purchase of "Fannie and Freddie bonds"
Original Source: Internet and Freescale Edition Author "Internet Gangsters" Adapted Note: Uncle Red Horse
Network Elite: "It is really debatable that China spent more than $300 billion to buy Fannie Mae and Freddie Mac bonds, but Fannie Mae and Freddie Mac will never go bankrupt and liquidate, because countries such as China and Japan bought 1 trillion, and Fannie Mae's largest holders are various funds in the United States, mainly large pension funds, with almost $5 trillion. If all this money is gone, let alone how foreign governments will react. Americans rebel first, and 5 trillion dollars is equivalent to. You lost all your American pension. Not to mention the impact of the bankruptcy of Fannie Mae and Freddie Mac on the US mortgage market, Fannie Mae and Freddie Mac are guarantors of 60% of US mortgages. "
"Two-line Rat": "Now the second house is already a credit debt of the US government, which is nothing."
Southrock (also known as Heather) said in August-1513:15, 2008: "(Buying Fannie Mae and Freddie Mac bonds) is of course a patriotic act. Need to doubt? Fannie Mae and Freddie Mac bonds are the most creditworthy bonds in the United States. Buying Fannie Mae and Freddie Mac bonds is far more beneficial than buying other bonds. As for the current crisis of Fannie Mae and Freddie Mac, the blow to the United States is far greater than that to China, and the American government has stepped in to rescue the market. Economic decision-making is not divination, but based on credit rating. For an interesting example, when someone praised the great leader Chairman Mao, he said that Chairman Mao's motive for launching the movement was great, but "his old man never thought …". Hehe, since his old man never thought of it, we can't never think of such a crisis in the United States, can we? If Fannie Mae and Freddie Mac in the United States really collapse, China will only lose hundreds of billions of dollars, while the United States will lose more than trillions? "
Tian Dan said at 20 10-07- 10 23:27: "Foreign exchange reserves can do nothing else, either cash in American banks or bonds or stocks. Obviously, US Treasury bonds are the best investment after balancing risks and benefits. -The central bank received 1 USD in foreign exchange and has issued RMB equivalent to 1 USD in China. If domestic people want to spend 1 USD abroad, they must hand over the RMB equivalent to 1 USD to the central bank. In other words, the money is not the assets of the government, but the money that all China people, all enterprises in China and all foreign enterprises in China have given to the Central Bank for temporary custody. If these dollars are deposited in banks, not only the interest rate is low, but also American banks are often unreliable. In the event of a financial crisis, hundreds of companies can go bankrupt, and the reliability is not as good as that of US Treasury bonds. "
Heather said at 2010-071kloc-0/9: 30: "There is nothing much ado about nothing in this world. It is useless to say that foreign exchange reserves are useless. China imports more than 6,543.8 billion tons of oil every year. Is it because of cheating? In that great, glorious and correct era, China wanted to sell oil for foreign exchange. Isn't it cool for an uncle? Hehe, I don't know anything about the economy, but I like to talk about the economy and shout "Who dares to answer my question". But no one dares to answer-answering such a question is insulting your IQ. " (Uncle Red Horse's brief comment: "There is nothing in the world, and the south stone is disturbing itself"! Uncle Ma Hong said: In the era of reform and opening up, the China government provided all kinds of "preferential treatment" for foreign capital and foreign businessmen, and the actual utilization (introduction) of foreign capital was only 622.405 billion US dollars; According to the data of the World Bank, in 2005 alone, China's income exceeded $654.38 billion. However, from China's purchase of US Treasury bonds to March, 20 10, he held more than 900 billion US dollars of US Treasury bonds, China bought 340 billion US dollars of "Fannie and Freddie bonds" and China spent so much on "investment" in "US stocks". How much profit does it make for China every year? "China's so-called' economic experts' and' self-styled elites' never dared to answer this question! -Mr Heather, who claims to be an elite, dare not answer! Because the "self-styled elite" who are in the state of smoking "addiction prevention" and "beauty addiction", because their "elite intelligence" is extremely limited, they can only say: "Answering such questions is insulting their IQ. " "
Yfycdm Tel: 2010-07-1609:18-18: 30.
Third, Uncle Red Horse reposted a "report" and "comment" by Securities Times reporter Jia Zhuang.
"Securities Times" reporter Jia Zhuang reports:
Yesterday, when the State Administration of Foreign Exchange answered a reporter's question on the hot issues of foreign exchange management policy, it said: Recently Fannie Mae and Freddie Mac were delisted by the New York Stock Exchange, and the outside world was worried about the loss of investment in Fannie Mae and Freddie Mac in China's foreign exchange reserves. The foreign exchange bureau responded that at present, the US government owns about 80% of the shares of Fannie and Freddie and is the largest shareholder. This time, Fannie Mae and Freddie Mac were delisted according to the relevant regulations of the exchange, which did not have a negative impact on their bonds. China's foreign exchange reserves have not invested in Fannie Mae and Freddie Mac stocks. At present, Fannie Mae and Freddie Mac bonds have normal debt service and stable prices. ("Securities Times" reporter Jia Zhuangyuan Note: What judgment did SAFE use to invest in Fannie and Freddie bonds at that time? In what way can the other party ensure the safety of China's investment? In addition, when the crisis was exposed in 2008, Russia withdrew its investment in time. Why does China continue to hold it regardless of the risk? Is it a simple investment judgment or a shady interest transfer? Don't these investment details need the entertainment of the whole country? The delisting of Fannie Mae and Freddie Mac's shares reflects that the current operating conditions of Fannie Mae and Freddie Mac are very bleak. According to what theory does SAFE think that "the bonds of Fannie Mae and Freddie Mac have no negative impact?" Does the market price and liquidity of Fannie Mae and Freddie Mac bonds have no effect on the US trading market? Can the risk of unrealized investment be controlled? As China people, we can only congratulate SAFE on becoming a super banker of debt of Fannie Mae and Freddie Mac, a rotten village that can't ship goods. )
The foreign exchange bureau believes that the losses that the sharp depreciation of the US dollar may bring to China's foreign exchange reserves should be comprehensively analyzed. First of all, we should comprehensively consider the currency composition of foreign exchange reserves and the exchange rate trend of various currencies against RMB. Foreign exchange reserve assets are composed of multiple currencies. Even if the dollar depreciates, other currencies such as the euro may appreciate, which will offset each other to some extent. ("Securities Times" reporter Jia Zhuangyuan Note: China buys dollars and the dollar falls; When did the euro purchase and the euro crisis cancel each other out? )
(The foreign exchange bureau said:) Secondly, only when China's foreign exchange reserve assets are converted into RMB will there be actual gains and losses. Foreign exchange reserves are mainly deposited in the form of foreign currency assets to ensure the country's external solvency, including paying for imports, international financing, repaying debts, maintaining the currency value and even the stability of the financial system. Unless there are special circumstances such as war or crisis, it is impossible for the People's Bank of China to convert foreign exchange reserve assets into RMB on a large scale, and it will not cause actual losses of foreign exchange reserves due to the depreciation of the US dollar against RMB. ("Securities Times" reporter Jia Zhuangyuan Note: Is the book loss not a loss? Can book income be called income? According to this statement, as long as it is never converted into RMB, everything will be fine. This is a typical ostrich policy. )
& lt/p & gt； Thirdly, the value of China's foreign exchange reserve assets depends on the actual purchasing power. Foreign exchange reserves are mainly used for external payments, so whether foreign exchange reserves suffer losses depends on whether their actual purchasing power declines. If inflation occurs in the United States, the actual purchasing power of foreign exchange reserve assets will be affected, that is, the physical quantity of the same amount of dollar assets will be reduced. However, the reality is that China's foreign exchange reserves have maintained a stable income for many years, and the rate of return on assets is higher than the inflation rate in the United States. In recent years, the consumer price index in the United States is generally low, while the rate of return on foreign exchange reserve assets in China can keep the real purchasing power of reserves growing steadily. ("Securities Times" reporter Jia Zhuangyuan's note: Since China's accession to the WTO, after the surge of China's foreign exchange reserves, a package of commodities denominated in dollars, including crude oil, copper, grain and other resources, has experienced an unprecedented surge. Is the actual purchasing power of China's foreign reserves greatly weakened or increased? Look at the dollar index. At that time, the dollar had been in free fall. Don't deceive yourself. )
Fourth, the book loss of foreign exchange reserves caused by RMB appreciation is far less than the book surplus of my financial assets. As of March 20 10, the balance of China's foreign exchange reserves was US$ 2.42 trillion. In the same period, the total assets of China's banking financial institutions are about 84.3 trillion yuan, equivalent to about 12.3 trillion US dollars, which is 5. 1 times of China's foreign exchange reserve assets. This means that when the RMB appreciates, the book gain of RMB assets is roughly equivalent to 5. 1 times of the book loss of foreign exchange reserve assets. If we consider the scale of other financial assets and real estate assets held by residents in the form of stocks and bonds, the book income of RMB assets will be greater. .