Preface

The tide of dollarization is coming, and surprisingly, Japan is the first to sell off US debt, leading to the failure of America's harvesting plan.

In addition to Japan, the United Kingdom and Canada are also selling off US debt on a large scale.

It turns out that not only does the United States have its own ulterior motives, but even its allies are two-faced.

Our country has been selling off US debt for many years, and now is a crucial time for the financial competition between China and the United States.

Unexpectedly, the United States was actually "stabbed in the back" by its own allies.

Is Japan suddenly waking up and no longer wants to be used as a pawn?

What actions will the United States take to fill this hole after the failure of this harvesting plan?

Betrayed by AlliesThose who can hurt you the deepest are definitely the closest people around you.

Japan and the United Kingdom follow the United States like a shadow, becoming the best neutralizing pool for the United States to achieve dollar hegemony.

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In March, the United States held $11.878 trillion in U.S. Treasury bonds, an increase of $19.9 billion compared to the previous month.

This is the highest exchange rate since August 2022 for Japan.

Among the countries holding U.S. Treasury bonds, Japan ranks first, and our country ranks second.

However, our country has been selling U.S. Treasury bonds for a full 3 months, reaching the lowest level since 2009.

Japan, on the other hand, has been continuously increasing its holdings of U.S. Treasury bonds, and this year, Japan has also started to sell U.S. Treasury bonds.

Since the beginning of 2023, Japan has only sold U.S. Treasury bonds held in hand in February, May, and September, reducing its holdings.

Last year, Japan's holdings still increased by $63.1 billion.

China has been continuously reducing its holdings of U.S. Treasury bonds and buying gold, but in April of this year, our country no longer sold U.S. Treasury bonds, but instead increased its holdings by $3.3 billion!What is the reason that China and the United States have arrived at the most critical moment in financial trade, and other countries have already begun to follow our country in selling off U.S. debt?

Why does our country suddenly decide to buy at this time, is it to prolong the life of the United States?

Considering that our country has not recently purchased a large amount of gold, this $3.3 billion in U.S. debt may not be an increase, but rather due to the absence of a large-scale reduction.

High selling and low buying, isn't that the market rule!

Now that the U.S. dollar exchange rate continues to decline, our country's decision to increase holdings might be to buy at a low price, then lend to other countries to repay U.S. debt, and then have these countries repay our country's debt with the Chinese yuan.

Our $3.3 billion in U.S. debt is not the key point; the key point is that Japan has reduced its U.S. debt by $37.5 billion, Canada by $24.7 billion, and the United Kingdom by $17.9 billion.

Together, the three countries have reduced a total of $80.1 billion in U.S. debt, which is a significant reduction in scale.

Japan originally did not consider selling off U.S. debt, as the relationship between Japan and the United States is very delicate.

However, once our country began selling off U.S. debt, it immediately stimulated Japan.

Both countries are major holders of U.S. debt, and once our country starts selling, it leaves Japan behind, especially at a time when the U.S. economy is experiencing a severe contraction.Japan became increasingly restless, but with the United States exerting pressure, Japan still did not dare to take action.

This led to the occurrence of the "Black Monday" event for the yen.

The United States significantly increased the exchange rate of the US dollar against the yen, causing the yen to depreciate, to the point where 160 yen could only be exchanged for 1 US dollar!

Such an exchange rate is not at all excessive to be called "Black Monday," after all, it is a new low in 34 years.

The United States' actions directly intensified Japan's determination to sell US debt.

The United States wanted to harvest it, but how could Japan let it be easily accomplished? A week after the yen exchange rate dropped.

Japan began to buy a large amount of yen, in order to be able to raise the yen exchange rate, but the effect was minimal.

It only pulled the exchange rate to a situation where 153 yen could be exchanged for 1 US dollar, which is really too far from the original 130.

After experiencing such a crisis, Japan's foreign exchange reserves became 12315.72, a decrease of 47.405 billion US dollars compared to last month.

The reduced money is what Japan used to get through this "Black Monday," that is, selling US debt.The United States continues to raise interest rates, which has a significant impact on the Japanese yen, causing a severe imbalance in Japan's domestic economy.

Under the continuous rate hikes by the United States, the number of bankrupt companies in Japan has reached 1,009!

The blow to Japan is considerable, severely damaging its economy.

Thus, at this critical moment in the financial competition between China and the United States, Japan has begun to massively sell off U.S. debt, stabbing in the back, making the United States also experience heavy losses, and even wishing to "sweep the United States out of the door."

Ever since Japan and the United States signed the Plaza Accord in the 1980s, Japan's financial sovereignty has been nothing but a facade.

Everything is in the hands of the United States, so Japan has no choice but to follow the United States, after all, such a big leverage is in their hands.

At that time, it was also the era of the "dollar" hegemony, and Japan could only "swallow its anger and bite the bullet."

Now that the United States is experiencing a severe economic contraction, if Japan does not take action at this time, it is unknown when the next opportunity will come!

The dollar hegemony is not long for this world.The advantage that the United States possesses is that in this competition, they are not just athletes but also referees.

This creates a situation where any disadvantageous aspect for the United States can be swiftly reversed by them.

Japan's decision to sell U.S. debt at this time suggests a desperate move.

Only by completely breaking free from the control of the dollar can they reclaim their rightful sovereignty.

If Japan fails to seize the opportunity, it will forever be overshadowed by the United States and remain a pawn in America's game.

Recently, the United States has also been sending various signals of a real estate crisis, with the economy severely shrinking, and it is feared that the U.S. interest rate hikes will soon begin to show signs of weakness.

Now, it has been betrayed by Japan, the United Kingdom, and Canada, and the U.S. harvesting plan has been thoroughly disrupted.

After experiencing a collapse of the yen, Japan has also kept a trump card.

Now, our country is continuously buying gold, as it meets the demands of assets and the multi-nourishment of currency.

Moreover, with the continuous appreciation of gold, even as the U.S. debt cycle approaches its end, the price of gold will never fluctuate too much.In April, China's gold reserves amounted to 72.8 million ounces. In just the first quarter of this year, the country increased its gold reserves by 290 tons.

It can be said that amidst any fluctuations in the capital market, the central banks of Turkey, China, and India are leading the world in gold purchases.