Joke Collection Website - Cold jokes - Why does the Japanese government hold a large amount of US Treasury bonds, but it does not need to repay the serious government deficit?

Why does the Japanese government hold a large amount of US Treasury bonds, but it does not need to repay the serious government deficit?

Buying US Treasury bonds is a fairly safe way to invest. Japan's foreign exchange reserves are large, so there must be ways to invest. It is not a good idea to buy US Treasury bonds, but there is no other better way, because the United States does not open the export of high-tech technology to China.

You should know that in finance, the liquidity of cash is infinite, so cash is unprofitable. We buy American bonds to increase the value of our foreign exchange reserves.

Second, foreign companies' dollars enter Japan > the central bank changes dollars into RMB according to the exchange rate-> begins to invest in RMB.

Well, knowing this, you may know why Japan's foreign exchange reserves, especially the US dollar reserves, are so high. In other words, Japanese buy American bonds in dollars, but Japanese can't buy American bonds in yen. Under the premise of a large trade surplus and more foreign investment, it is inevitable that Japan will hold a large amount of dollars.

Knowing this, you will know that the redemption is also US dollars, not Japanese yen.

Third, as an issuer of US dollars, it is impossible for the United States to repay the US dollars. Can the printing machine take money? Joke!

Of course, it is still impossible to pay off debts by devaluation, which will lead to inflation, but new government bonds can be issued to rob Peter to pay Paul.

Fourth, the yen is not a currency in circulation, and only Japan can use it. American currency is in circulation and can be used all over the world. For Japan, it is very important to control the exchange rate with the US dollar and stabilize the exchange rate of the Japanese yen against the US dollar.

Fifth, the United States is the largest country in the world. Although unhappy, there is no doubt that people can buy American government bonds to give Japanese carrots to eat. . .

Sixth, a good choice is sometimes just one of a group of bad choices, and choosing one is not the worst.