The hottest international topic for the second half of 2019 was the global wave of de-dollarization, with Brexit, a collective German-led European boycott of the dollar, demanding its own financial system, China and Russia selling off their US debt, and the world returning to US gold, as if the US dollar-centred international monetary system were collapsing.
In fact, the removal of the dollar is entirely the right thing to do, Americans are not very good use of the United States as an international currency, but use the dollar for their own benefit, in other words, it is more intuitive to say that Americans spend the world's money to keep themselves, Americans are in debt everywhere, so far Americans have a debt of $23 trillion, what is the concept? Not to mention the principal, interest alone, americans now need to pay $500 billion a year, even if the u.s. economy is the world's largest, but such a huge debt also began to worry about the strength of the u.s. money.
In order to ensure their integrity and avoid losing the dollar, the United States is also trying to pay the money, but the way to pay the money can be said to insult the world's IQ, simply is four words, printing money to pay debt, Americans have repeatedly planned to sell 50 years, or 100 years of long-term bonds, in the current form of the United States, in 100 years, whether the United States will be able to buy it, but even more surprising is that the United States has already owed $23 trillion and began to borrow money, and this plan to borrow $700 billion.
In the face of the current situation, the United States is very difficult to borrow money, China Russia has made it clear that the rejection, China has sold six consecutive U.S. debt so far this year, we still have trillions of U.S. debt, it is clear that China will not borrow, and both Russia and Europe are trying to avoid the impact of the dollar, not to borrow is normal, but unexpectedly a country to grab a loan.
The country is japan. Given its economic prowess, it is not difficult to lend the us $700 billion. The point is, why should japan do so in this form of global de-dollarization? In fact, japan is not most worried about the strength of the united states, they are most concerned about the rise of countries around them, now many countries are increasing their holdings of chinese bonds, this situation, japan chose to support the united states, the intention is clear.