Concerns Over US Debt: Experts Warn Taiwan May Face Severe Economic Shock
The total issuance of US Treasury bonds has reached $36 trillion at the beginning of 2025. With the ongoing US-China trade war, market confidence in US debt is waning, raising alarms among experts.
Financial author Hugo warns that if US debt defaults, it could be far worse than the 2008 financial crisis. Current rumors indicate that China and Japan may be selling off US bonds, prompting many investors to reduce their holdings out of fear for the US economy's future.
As $6.5 trillion in bonds come due in June 2025, the new interest rates will significantly impact the government's refinancing ability. Unfavorable rates could lead to deeper economic shocks.
Hugo cautions that a default on US treasuries would send shockwaves through global financial markets, driving funds towards other safe assets like gold or cryptocurrencies, further weakening the dollar's position and potentially causing significant volatility in Taiwan's currency.
