China and Russia are leveraging US hegemony, and China is accelerating the cleaning up of US debt. Putin described the US as "horribly stupid"!

On the last day of his visit to China, Russian President Vladimir Putin devoted a press conference in Harbin to discussing the issue of US economic sanctions against Russia, which many people are concerned about. Putin pointed out that the US dollar is the basis for the prosperity of the United States. As the world reserve currency, the US dollar has brought huge benefits like "windfall" to the US economy and financial system. After saying this recognized fact, Putin turned the corner and emphasized that the US side used the US dollar as a tool for foreign policy struggle, which was one of the most serious strategic mistakes of the US political leadership, because it was undermining the confidence of the world in the US dollar and the United States, leading to the inevitable development of the globalization process of "de US dollar". Putin also made a special analogy, that is, the US side is "sawing off the branch on which it is riding". Finally, Putin used four less elegant words to describe the US action - "frightfully stupid"!

It has to be admitted that although Putin's description is not elegant, it uses simple words to tell a very profound truth. As Putin said, the decline of the world monetary status of the US dollar is indeed a major strategic loss of the United States. The United States can easily affect the global economy just through its own monetary policy. The impact of the Federal Reserve's interest rate increase and reduction on the global economy is the most typical example. The United States does not want to maintain this loss, but attacks the dollar system itself, which is a stupid move. Why does the US attack the US dollar system by itself? To put it bluntly, the US financial sanctions against Russia are a double-edged sword that has shaken the foundation of the US dollar while bringing losses to Russia.

In fact, the value of the US dollar is essentially derived from the national reputation of the United States. After the outbreak of the conflict between Russia and Ukraine, the United States kicked Russia out of the SWIFT settlement system, which not only forced Russia to use currencies other than the US dollar for trade, but also proved to the world that as long as the US dollar continues to be used, it means that the United States holds the handle of foreign trade, and the United States may use this move to hit its own economy at any time. This operation of the US government can be described as forcing a group of countries around the world to reduce their dependence on the US dollar and turn to other currencies or other forms of foreign exchange reserves. No wonder Putin will call it "horribly stupid". The most typical examples in this regard are China and Russia.

According to the latest capital flow report of the US Treasury Department, in March this year, China again reduced its holdings of US treasury bonds by US $7.6 billion, which was the third consecutive month that China reduced its holdings, and the total holdings fell to US $767.4 billion. While reducing its holdings of US dollar assets, China has significantly increased its gold reserves. By the end of April this year, China's gold reserves had increased by 60000 ounces month on month, with the total reserves reaching 72.8 million ounces, which is the 18th consecutive month that China has increased its gold holdings. With the increase and decrease, everyone can see that China is accelerating the liquidation of US debt and increasing its holdings of gold. China is moving away from US dollar assets, which is not the most important thing. More importantly, China is working with Russia to promote "de dollarization" in the field of international economy and trade.

Since the US imposed comprehensive financial sanctions on Russia, Russia has quickly turned to local currency settlement with other countries, including China, India and other countries. Earlier, Russian presidential assistant Ushakov revealed that 90% of the trade between Russia and China has been settled in ruble and RMB. Obviously, China and Russia have basically abandoned the US dollar and achieved "de dollarization" in their economic and trade cooperation, which has set an example for all countries in the world. As more and more countries follow suit, the international monetary status of the US dollar will accelerate its collapse. Once the US dollar hegemony, the foundation of the US hegemony, collapses, the US hegemony system will naturally collapse. Today, the world order is on the eve of drastic changes. No matter what the US government does, it can't stop the change. "De dollarization" and "anti hegemony" are the expectations of the world. Washington cannot reverse this historical trend.