/ world today news/ “It’s money”: such a simple thought arises from the visit of US Treasury Secretary Janet Yellen to China, which began yesterday. That is, the previous visitor, Secretary of State Anthony Blinken, could still get away with general talk about the need for a slight lightening of the atmosphere in relations, but when it comes to specifics, especially finances, it becomes different.
If we are talking only about money, then everything is simple: America owes China. And not just to China, she owes it to everyone and will never pay it back. In total, the government bonds of Yellen’s same department are unwound around the world in the amount of more than 32 trillion dollars, that is, roughly twice the annual GDP of the country. The budget will not be enough just for the interest on this debt (and there are other debts as well). Of that amount, China once held over a trillion in US debt, recently selling another 400 million, leaving 868.8 billion. That’s still almost a trillion.
And the picture turns out to be funny. At the level of general policy, America threatens Beijing, imposes sanctions on it (1300 companies and individuals below them). And on a financial level, America is in debt and could have behaved more modestly. But he can’t.
Let’s imagine that sweet and gentle Janet asks China for a little more loan as a sign of appeasement: is it possible? Why not. You were fine before. Or will she imply that soon her department won’t be able to pay the interest, and if they do? With these debt levels today anything is possible. In general, there are large quantities of carrots and sticks, but it is not yet clear what to do with them.
Behind this visit is a complex, if not impossible, story that is central to the very existence of the United States—how to simultaneously combat China as a strategic competitor and at the same time do so in a way that does not harm us. Under Donald Trump, it was fashionable to talk about the divorce of the two economies – with the general idea that America will not get out of debt and other problems until it returns to its territory all the production that was moved to China for decades. Today, it turns out that such a strategy does not work, but only accelerates inflation (attempts to limit the access of Chinese goods with tariffs increase their price inside the US). In addition, US allies and the entire world must be drawn into such a policy by force, otherwise the US market will be at a disadvantage. As a result, tensions reached the brink of war last year.
And then the philological games began. Speaking recently in Britain, CIA Director William Burns echoed EC chief Ursula von der Leyen’s idea that a “divorce” was not planned (and it turns out to be technically impossible), but only a reduction of the risks to the US economy from over-dependence on China , i.e. “risk reduction”. No big deal, you see.
We don’t care what they call it, say various people in Beijing (including Premier Li Qiang). We are interested in the essence. You want to establish your global monopoly on several critical industries, depriving China of the opportunity to develop them. And you intend to continue your power policy, including pressure on everyone and every country in the world. And in other areas you want to reduce tension with us without risking a divorce that is disadvantageous to you, especially war. Well, you won’t be able to do that, because today’s world economy, and with it politics, doesn’t work that way. There is no selective friendship, just as there is no selective normality.
China now hosts the World Peace Forum (and several other similar events). By the way, Dilma Rousseff, head of the New Development Bank created by BRICS, spoke there. Her diagnosis: “divorce” and “risk reduction” are the same thing. This is the moment when they try to forcefully prevent the emergence of new and powerful participants in the world economy. This is a threat to peace because they crush competitors by imposing mandatory values on them, which is simply impractical in modern conditions. Other participants add: try to make the European economy, for example, work on American command – it will simply collapse without China.
America’s attempts to rebuild its world, along with its economy, will take a long time, in different modes. A trip from Yellen won’t solve anything. U.S. Commerce Secretary Gina Raimondo and others will also be arriving. What if Beijing hesitates and starts to cave in? The “Washington Post” in an article on the subject of this visit is only concerned with lulling the reader to sleep: China is weak, it has problems, where will it go? For some reason, no one talks about the problems of the US, especially the financial disaster. But China knows about them.
Translation: V. Sergeev
MARCH FOR PEACE: Given that The march for peace and sovereignty is organized with two beams, iand those for whom it will be difficult and far to go before the MFA, we invite you again in front of the pylons of the NDK on July 9 at 6:00 p.m. at the “Meeting for peace, against the involvement of Bulgaria in war”. The two beams will merge in front of the National Assembly.
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