In Finance, What Is a Clean Price?

Financial cleaners, the United States bears the debts of most countries in the world, of which China, Japan, and Brazil are the major creditor countries, and once the United States defaults on national debt, the loans of these countries shrink or disappear, and these creditor countries act as A cleaning effect of bad finance in the United States is known as a financial cleaner. Japan's "Diplomat Scholar" magazine website states that China is caught in a "2 trillion dollar dilemma". The article said that a political drama about raising the U.S. government's debt ceiling was staged in Washington. Although the protagonist of the play was the Democrats and Republicans in the United States, China, the largest holder of U.S. debt, was undoubtedly the one who was anxiously waiting for the bipartisan struggle The aftermath of the bitter audience. Once the nightmare result of a U.S. debt default occurs, the value of China's accumulated Treasury bonds will shrink sharply. As 60% of China's 3.2 trillion US dollars of foreign exchange reserves are in US dollars and US dollar assets, the book losses caused by the decline in the price of US dollar bonds and the depreciation of the US dollar will likely reach at least tens of billions of dollars. The article said that, in contrast to many Americans worrying that China might use its national debt as a weapon of mass destruction against the United States, China is becoming a "financial cleaner" in the US debt ceiling farce.

Financial cleaners

Right!

Financial cleaners, the United States has the debt of most countries in the world, of which China, Japan and Brazil are the main

1. The United States has "locked in" big creditors like China.

2. The United States' tossing this time has greatly raised the awareness of countries around the world about the risks of US debt.