Theoretically, holding such a "diplomatic bond" for 10 years has a return of $50, the overall yield is as high as 100%, and the average annual yield is as high as 10%, which seems to be good.

But once the "diplomatic bonds" are held, the world suffers from severe inflation, let's say 200% inflation in 10 years.

That is, what you could buy for $50 10 years ago will be available for $150 10 years later.

In this way, holding this "diplomatic bond" for 10 years, the investor not only did not receive any gains, but also suffered serious losses, which is something that is unacceptable to any investor.

Therefore, from a common sense point of view, long-term treasury bonds must not be issued in the form of "one-time repayment of principal and interest", which is the simplest question of common sense in economics.

So this is also the reason why Qiao Tianyu was shocked when he heard that the "diplomatic bonds" were issued in a lump sum repayment of principal and interest!

"That's right, when the 'diplomatic bonds' were issued, the United States played the role of an angel and paid for the development of the third world, which won wide acclaim from the world and allowed the United States to successfully survive the diplomatic crisis. Wu Minghao then explained.

"But no one expected that the United States had buried such a big mine in the way of issuing treasury bonds, and now the repayment period of 'diplomatic bonds' is about to expire, and this mine may detonate at any time!"

"Mr. Wu, I still haven't figured it out. Qiao Tianyu shook his head in confusion.

"Long-term treasury bonds cannot be issued in the form of 'one-time repayment of principal and interest', which is the consensus and common sense of the economic and financial circles.

"Besides, the world's major investment institutions are not stupid, they know that the 'diplomatic bonds' are extremely risky to adopt the method of 'one-time repayment of principal and interest', why do they still want to jump into the fire pit? I really can't figure it out!"

"Hide from the sky and cross the sea!" Wu Minghao pointed out the heavenly opportunity, "That time the Americans played a good trick to hide from the sky and the sea, mainly for the following three reasons:"

"The first reason is that in the 80s the US financial markets were far less open than they are today, especially before 1984, when the US Treasury had a threshold for the purchaser of US Treasury bonds. ”

"In general, the initial issuance of U.S. Treasury bonds can only be purchased by U.S. investment institutions, or a very small number of foreign investment institutions with a U.S. bond market license. ”

"So investors in other countries weren't particularly familiar with how U.S. Treasuries were issued and repaid. ”

"At that time, the issuance of 'diplomatic bonds' was unprecedented to investors from all over the world, so many investors did have a cognitive gap when they bought 'diplomatic bonds' at that time. ”

"The second reason is that before the 'diplomatic bonds' were issued, the United States used their huge propaganda power to carry out a wide campaign. ”

"The Americans exaggerate the high yield and high return of 'diplomatic bonds', falsely claiming that the whole world is eager to grab the bonds, giving investors all over the world the illusion that if you grab it, you will make it. ”

"At that time, the U.S. Treasury Department asked the five major investment banks on Wall Street to borrow money all over the world, and everyone said that they were going to rush to buy 'diplomatic bonds', which further stimulated the interest of investors around the world to rush to buy. ”

"So as soon as the 'diplomatic bonds' were issued, investors from all over the world flocked to them, and within a few minutes, all the $2 trillion 'diplomatic bonds' were snapped up. ”

"The third reason is that the interest rate of the 'diplomatic bond' was really high enough, the issue price was really 50 US dollars at that time, and the average annualized yield was 10%, so it was indeed a great temptation for investors around the world. ”

"And no one expected that inflation around the world would be so crazy in the next ten years, so misestimating the world economic situation is also a very important reason for investors' mistakes!"

"Oh, okay. Qiao Tianyu nodded.

It seems that the Americans have studied the "36 strategies" of China in such depth, and they have used a trick of "hiding from the world and crossing the sea" so perfectly, and they are also convinced!

"Mr. Wu, then how are we going to use that 'diplomatic bond' to make a big fuss next?" Qiao Tianyu continued to ask.

"As I said earlier, the repayment period of the 'diplomatic bonds' is less than a month away, and now investors all over the world know about the conspiracy of the Americans, and they are all crying out that they are being fooled, and this matter is also making a lot of noise in the world's financial circles. Wu Minghao then explained.

What's more, many economists have studied the reasons for the continued high global inflation rate in the 80s, and pointed out that the most important reason was the debt crisis that swept the world in the 80s. ”

"The cause of the debt crisis was that the Federal Reserve suddenly implemented a high interest rate policy after issuing 'diplomatic bonds', which led to the chain reaction of the world financial circle, and finally led to the outbreak of the global debt crisis!"

"As soon as the results of this study came out, investors all over the world suddenly realized that the 'diplomatic bonds' are likely to be a trap specially laid by the United States, just to lure investors all over the world into being fooled and cutting the world's leeks!"

"Investors around the world are outraged and outraged, and they are urging the U.S. Treasury to compensate investors in line with the inflation rate of the past decade when repaying the principal of the 'diplomatic bonds.'" ”

"However, the issuance of 'diplomatic bonds' was as high as $2 trillion that year, and based on the average global inflation rate of 150% over the past decade, this time the US Treasury needs to come up with $5 trillion to compensate investors around the world!"

Even though the United States is the world's largest economic power, you must know that the United States has just come out of the British pound crisis in '92, and $5 trillion is simply astronomical, and it is absolutely unbearable!"

"So during this time, 'diplomatic bonds' have become the most headache for the US Treasury and the Federal Reserve, and those senior officials are like ants on a hot pot at this time, in a dilemma. ”

"To compensate, the Americans don't have so much money to lose, and the U.S. treasury bond market is not only a long-term treasury bond of 'diplomatic bonds', if the 'diplomatic bonds' are compensated, then can other long-term treasury bonds be replenished?"

"If they don't compensate, Americans are worried that they will be attacked by investors all over the world, you must know that in today's world financial market, but in the era of hegemony, countless people wish the United States would lie down!"