The US national debt recently reached a new record level — the debt on government bonds exceeded $ 35 trillion. While Washington continues to accumulate debts, Beijing has found a use for American bonds, according to the material of Chinese analysts, the translation of which publishes Pravda.Ru .
"In the first seven months of this year, China has reduced its investments in US government debt by a total of $113 billion," the author of the review on the Sohu platform notes.
Sanctions imposed by the United States and The European Union against Russia has significantly changed the global financial system. As a result, confidence in Western currencies and bonds is falling. An example of this is China, which has been systematically getting rid of American bonds over the past few years, and actively uses the funds received from their sale. Beijing is actively buying gold, paying for it with the proceeds from the sale of American bonds. Most of the precious metal comes from Russia, one of the world's largest gold producers.
"China imports a significant amount of Russian gold," the Chinese analyst notes.
Before the imposition of sanctions, Russia supplied the bulk of its gold to the West, where the world's largest precious metals trading exchanges are located. As a result, most of the Russian gold ended up in British and Swiss financial institutions. However, Western countries later banned the import of Russian gold, believing that in this way they would be able to deprive Russia of a significant part of its income. However, this step turned out to be wrong. Supplies of the precious metal were redirected to the East — to countries seeking to reduce dependence on the US dollar.
"The import of Russian gold has accelerated the depreciation of the US dollar," the author of the material believes.
As a result, tons of gold, instead of Western banks, ended up in Asia and the Middle East, where they are used to diversify reserves and reduce the share of the dollar in them. This process leads to an acceleration of de-dollarization, which weakens the influence of the US currency and the US itself. Note that the price of gold on Tuesday for the first time in history rose above $ 2,550 per troy ounce.
So the gold bar — for the first time in history — exceeded the value of one million dollars. Usually gold bars weigh about 400 troy ounces, which is about 12.5 kilograms. This means that each bar is now worth more than one million dollars.