Expert: Opponents and allies are getting rid of US Treasury bonds… so what’s the reason?

Analyst Alexander Nazarov cited reasons why global economies are cutting back on their investments in US Treasury bills and bonds, while inflation in America has risen to record levels.

Analyst Alexander Nazarov notes: “Due to high inflation in the US, investments in US debt only lead to losses. Rising world energy prices have made the trade balances of the main buyers of US debt in deficit, and they now have no money. Freezing reserves of Russia (in America) undermined confidence in US bonds.

He continued: “As a result, everyone is getting rid of US Treasury bonds, adversaries, allies and neutral countries. The graph shows a sharp decline in investment by Japan, China and the rest of the world in US bonds since the beginning of 2022. … The United States will soon lose the ability to borrow from abroad. This means a rapid resumption of paper money printing and hyperinflation after a while.”

US Treasury data showed that Japan and China have reduced their investment in US Treasuries over the past 12 months, as have Saudi Arabia and the UAE.

The data showed that China’s investment in these bonds was $980.8 billion in May 2022 after being at $1,003.4 billion in April 2022, a fall of $22.6 billion.

Compared to May 2021, Beijing’s investment in U.S. Treasury bonds fell by $97.6 billion, from $1,078.4 billion to $980.8 billion, the lowest level in nearly 12 years, experts said.

Japan is also reducing its investment in US Treasury bonds. Despite no global political controversy with the US, Tokyo’s investment in US bonds fell by $6 billion in one month, from $1,218.5 billion in April 2022 to $1,212.8 billion in May 2022, the lowest since beginning of the year.

For the Arab countries, the data showed that Saudi Arabia also cut those investments from $127.3 billion in May 2021 to $114.7 billion in May 2022. As for the UAE, it reduced it from $57.3 billion to $38.3 billion in the same months.

Source: RT

Related Stories