Russian Government turns away from US debt ; Belarus and Russia abandon the dollar in their trade ; U.S. will add $200 billion in additional taxes on Chinese Goods.
Russian Government Turns Away From the United States Debt
The country recently sold $47.4 billion of the $96.1 billion of U.S. debt it held.
This pushed Russia from 16th to 22nd among the largest foreign holders of US Treasury bonds.
Russia now holds less American debt than Bermuda and does not intend to stop there. Since 2011, Russia has reduced its holdings of US Treasury bills by two-thirds, from $150 billion to less than $50 billion today.
It would seem that the bear is not the only one to turn away from the United States. Other countries have also reduced their investments in US debt. Turkey, which repatriated its gold from the United States, almost halved its US Treasury assets from $62 billion to $38.2 billion.
Norway, has also reduced its participation by 40% since September 2017, from $64.1 billion to $39.3 billion, according to RT.
The trend is real and countries have serious doubts about the dominance of the dollar over the yuan, as well as about the outcome of the trade war, which is currently disrupting international trade.
U.S. will add $200 Billion in Additional Taxes on Chinese Goods
The trade war seems to be taking on a whole new dimension, and the two countries persist in applying new tariff sanctions.
The United States recently announced a new tariff of +25% on $50 billion worth of Chinese imports. This triggered an immediate response from the administration of Chinese President Xi Jinping, who responded with +25% tariffs on $34 billion worth of US goods.
These new trade sanctions will be operational in China as in the United States on 6 July 2018.
However the Trump government reacted, now threatening China with an additional $200 billion tax on Chinese goods.
“These new tariffs will come into force if China refuses to change its practices, and the recently announced new taxes are implemented," Trump said, according to the cnbc
Belarus and Russia Give up the Dollar in Their Trade
Belarusian Prime Minister Andrey Kobyakov has called for the total replacement of the US dollar by the national currency in trade between Russia and Belarus.
It would be very advantageous for both our countries if the whole commercial turnover, as well as the price formation were fixed through the national currency," said Mr. Kobyakov.
The positive trend in economic growth in our countries was significant in 2017 and was reflected in the result of trade between our two countries. "»
In 2017, trade between Belarus and Russia increased by +23.5% to reach 32.4 billion dollars,according to RT
Such a transition would make it possible to continue and amplify the growth of trade between the two countries, but also to become independent from the American dollar.
Source: BUNKER GOLD&SILVER