BIT Official: U.S. Federal Government's Outstanding Public Debt Nears $40 Trillion, Market Concerns Rise Over Japan's Reduction of U.S. Treasury Holdings

According to a report by Golden Finance on July 24, BIT Official released its weekly report stating that in the coming days, investors may begin to focus on the fact that the total outstanding public debt of the U.S. federal government is nearing $40 trillion. As long as the U.S. economy continues to grow and foreign investors remain willing to finance fiscal deficits and debt, fiscal spending can continue to expand without immediate and significant market constraints. However, market concerns are rising: sovereign nations like Japan may gradually reduce their holdings of U.S. Treasuries to support the rapidly depreciating yen. Particularly after nearly two decades of a near-zero interest rate environment, Japan now appears to be facing increasingly prominent domestic inflationary pressures. The era of near-zero interest rates has come to an end. The rise in U.S. Treasury yields not only reflects market concerns over Japan potentially reducing its U.S. Treasury holdings but also increasingly factors in the risk of China further lowering its U.S. Treasury positions, especially after Trump accused Beijing of interfering in U.S. elections. As the U.S. midterm elections approach in early November, this issue is expected to draw more attention and could further strain U.S.-China relations. Meanwhile, China continues to advance the diversification of its foreign exchange reserves, gradually reducing its allocation of U.S. Treasuries and increasing its gold reserves.