The US found the weakest point

25 July 2018, 10:31 | Economy
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It lurks in securities. It was worth, for example, Moscow from April to May to reduce assets in US government loan bonds - from $ 96 billion to $ 15 billion - as the US rose interest rates. And the head of the White House, Donald Trump, is very unhappy with this. Recently, he said that this kind of infringes upon all the achievements of the American authorities. Expensive loans limit the growth of the US economy, writes Business Insider.

Russia cut assets in US securities for several reasons. Moscow fears that the sanctions imposed by Washington in early April may extend to the trade in American bonds. Therefore, they decided to get rid of most of the assets in order to insure themselves against possible confiscation. According to the former head of the Central Bank of Russia Sergei Dubinin, bond sales are a clever deal.

It helps to strengthen the ruble and diversify foreign exchange reserves. Some experts called this approach of Russia "a purposeful attack on the US Achilles heel," the publication says.. The deficit of the US budget in the coming years, according to the International Monetary Fund, will exceed $ 1 trillion. This increases America's dependence on creditors. And most of all, the US economy will suffer if China gets rid of their securities. Perhaps that is why Trump threatens punitive tariffs on high imports from China.




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