Taiwan central bank says US debt rising too fast may impact trust in Treasuries
Taiwan's $593 billion in foreign exchange reserves are more than 80 percent made up of US Treasury bonds, according to the central bank, which said earlier this month that Treasuries were 'sound' and still favored by investors. It added there were no worries about the dollar's position as the leading international reserve currency.
Governor Yang Chin-long, in a speech posted on the central bank's website, said Trump's repeated criticisms of the US Federal Reserve's monetary policy have caused concerns about its independence.
'In addition, Trump 2.0's trade policy has made investors hesitant about holding US Treasury bonds; Trump's budget, the 'One Big Beautiful Bill Act,' may cause US debt to expand too quickly, which is unfavorable to the outlook for US sovereign debt,' he said.
'All of these have had a significant impact on the international monetary system centered on the US dollar and based on US creditworthiness.'
Trump's sweeping tax-cut and spending bill is the centerpiece of his domestic agenda.
The bill would lead to a larger-than-expected $2.8 trillion increase in the federal deficit over the decade, despite a boost to US economic output, the nonpartisan Congressional Budget Office projected on Tuesday.
Trump, in his first few weeks in office, also announced sweeping tariffs on a broad swathe of countries and trading partners, including Taiwan, only to pause them for 90 days in April to allow for talks to take place.
Yang said Trump had been hoping the tariffs could resolve the US trade deficit.
'However, the tariff policy not only fails to solve the structural problems, it will also impact the US economy, and threaten to further affect the outlook for global trade and the economy.'
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Saudi Gazette
2 hours ago
- Saudi Gazette
Trump's election paved way for Israeli attacks on Iran, intelligence sources say
BRUSSELS — Israel had been planning a full-scale invasion of Iran for many years, but the re-election of Donald Trump coincided with a series of critical events paving the way to the direct attack in June this year, four current and former Israeli intelligence sources told Euronews in separate interviews. Israeli intelligence sources, speaking on condition of anonymity due to security concerns, told Euronews that Mossad agents had identified key strategic factors and political conditions enabling them to prepare for and initiate the attack on Iran. Among these, they cited the intensification of the proxy war, the election of US President Donald Trump, and the momentum of nuclear negotiations with Western powers. On 13 June, Israel launched multiple land and air strikes on Iran, killing senior Iranian military leaders, nuclear scientists and politicians, and damaging or destroying Iranian air defences and nuclear military facilities. Iran retaliated with missile and drone strikes on Israeli cities and military sites, aided by Iran-allied Houthis in Yemen. The US defended Israel from these attacks and, on the ninth day, bombed three Iranian nuclear sites. Iran then struck a US base in Qatar. On 24 June, under US pressure, Israel and Iran agreed to a ceasefire. Both sides claimed victory following the ceasefire. Israel and the US asserted that they significantly degraded Iran's missile and nuclear programs, while Iranian authorities denied these claims. Independent assessments are currently limited due to the secrecy surrounding Iran's nuclear and the US said that the attack had been in the planning for many years, in parallel with diplomatic engagement with Iran.'Israel has never hidden the fact that it wants to destroy the Iranian nuclear program, and it has never hidden the fact it was also willing to allow it to be resolved diplomatically, as long as the diplomatic solution prevents Iran not only from enriching uranium, but from ever getting the capacity to pose an existential threat to the state of Israel,' a first Israeli intelligence source told engagements were not bringing any tangible results, the sources said, while tensions between the US and Iran grew following Donald Trump's first presidency in the US from 2018, Trump withdrew the US from the 2015 Iran nuclear deal (JCPOA), which had limited Iran's nuclear program in exchange for sanctions relief. Following the US re-imposition of sanctions, Iran began ignoring the deal's nuclear restrictions in the meantime, the proxy war between Israel and Iran was progressively escalating.'I think the pivotal moment was in April 2024, when Iran launched missiles directly from its own territory at Israel. Until then, Iran had primarily relied on proxies to attack Israel, while Israel carried out covert operations inside Iran with plausible deniability, aiming to prevent escalation into full-scale war,' the first intelligence source April 2024, Iran launched missiles at Israel in retaliation for an Israeli strike on its consulate in Syria that killed Brigadier General Mohammad Reza Zahedi. He was the highest-ranking Iranian military official killed since the Iranian General Qassem Suleimani's assassination in 2020 by the US Trump administration. Suleimani was the 'architect' of Iran's proxy war in the Middle East.'I think Israel had to wait from April 2024. It needed time to gather all the intelligence and planning it needed in order to feel confident that, already in the first two or three days of the war, we would be in a position where we had complete control over the situation, minimal casualties at home, and complete control of Iranian airspace, with the ability to attack whenever and wherever we want to,' the source Trump's second election as US president was another key pivotal moment and was welcomed by all the four sources.'The original plan was to attack in October 2024. That was after the second direct missile attack by Iran on Israel following Israel's assassination of Hezbollah's leader Hassan Nasrallah in Lebanon in September,' the first intelligence sources said, but the attack was delayed to wait for the US elections in November.'I think it was very important for Israel that Trump should win those elections. Once Trump was elected, he put the main emphasis on reaching a hostage deal,' said the second source, referring to the Hamas-Israel conflict.'Once the hostage deal was signed around March 2025, Israel was again in a position to attack Iran. But the US and Iran entered into negotiations, to try bringing a peaceful solution to the issue of Iran's enrichment and nuclear program,' the first source March, the US and Iran began indirect negotiations on the Iranian nuclear program. The negotiations did not bring an agreement, although counterparts described them as 'constructive'.'Trump gave 60 days to those negotiations. The day after, Israel attacked Iran. I think that obviously was coordinated with the US administration,' all the current and former Israeli intelligence sources told has never publicly stated that Israel's first attack on Iran was coordinated. However, following the US strike on Iranian nuclear facilities, Defense Secretary Pete Hegseth said at a press conference on June 23 that the operation had been planned for many years.'When we attacked, we were at the end of the 60-day period of negotiations. I think it was very clear to Trump at this stage that the Iranians were not willing to forego enrichment on Iranian soil, even though the negotiations did bring up some interesting solutions to that. For example, some sort of international enrichment agency that would allocate enriched uranium at civilian levels to all countries in the region interested in it,' the first intelligence source said.'Trump realised Iran was engaging in negotiations merely to buy time, with no real intent to reach a resolution. The talks served as a decoy, giving Iran the impression it wouldn't be attacked, especially amid widespread press reports that Israel was on the verge of striking,' the first source Iran claimed victory and celebrated its resilience towards Israel's invasion, Israeli intelligence sources said that Tehran's regime has been left weakened following the attack.'Israel has emerged from several conflicts in a stronger strategic position in the region, but in a more difficult political position with its Western partners, except perhaps Washington. We're at a very delicate moment in which both Israel and Iran have little to gain by pushing further right now,' Ian Lesser, fellow and adviser to the German Marshall Fund's president, told Euronews.'Iran has fewer options now. One option is to return to negotiations. Another is to turn to its traditional methods of responding, which rely on proxies and non-traditional actions, including terrorism. There is also the possibility that, if Iran maintains some ability to develop nuclear weapons, it may see this as another path. But I don't think anyone will let them do that. There may be disagreements about Israeli strategy and policy, but overall, Israel and its Western partners are not willing to tolerate a nuclearised Iran,' the expert the war had gone further, Israel would have probably attacked gas and oil installations, a fourth former Israeli intelligence source told Euronews. However, after the ceasefire, negotiations have resumed at diplomatic 25 July, diplomats from Iran met counterparts from Germany, the UK, and France in Istanbul for talks, the first since Israel's mid-June attack on Iran, amid warnings that these European countries might trigger a 'snapback' of UN sanctions on second intelligence source said that following the conflict, Israel would maintain control over Iranian airspace, in order to 'destroy anything that even suggests that the Iranians are preparing to rebuild any of the capabilities that we have destroyed'. — Euronews
Al Arabiya
2 hours ago
- Al Arabiya
Zelenskyy says Russia is preparing for new offensive operations
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Arab News
2 hours ago
- Arab News
Pakistan welcomes US ‘foreign terrorist organization' designation for Baloch separatist groups
ISLAMABAD/KARACHI: Pakistan on Tuesday welcomed the United States administration's decision to designate the Baloch Liberation Army (BLA) and its Majeed Brigade faction as Foreign Terrorist Organizations, describing Islamabad's counterterrorism efforts against militant violence as a bulwark that has helped secure global peace and stability. The BLA, which also uses the alias of The Majeed Brigade, is the most prominent of separatist groups in Balochistan, which borders Iran and Afghanistan and is home to key China-led infrastructure projects, including a port and a gold-copper mine. The US State Department made the proclamation about the separatist militant outfit a day earlier while citing a list of attacks claimed by its top leaders. In March, the group claimed responsibility for the hijacking of the Jaffar Express train traveling from Quetta to Peshawar, killing 31 civilians and security personnel and holding hostage over 300 train passengers. It was also blamed for ramming an explosive-laden vehicle into a school bus in Khuzdar in May, resulting in the deaths of at least eight children along with the bus driver and a conductor. 'BLA/Majeed Brigade is involved in multiple terrorist attacks in Pakistan, including the heinous Jaffer Express terrorist incident and Khuzdar bus attack that resulted in the loss of precious lives,' the foreign office in Islamabad said in a statement. 'Pakistan remains a steadfast bulwark against terrorism," it added. "Our sacrifices have secured critical counter-terrorism successes, not only for the country, but for regional stability and global security.' The BLA has also targeted Chinese nationals working on strategic infrastructure development, industrial, educational and power generation projects in different parts of Pakistan. The State Department quoted Secretary Marco Rubio in a statement as saying the US decision demonstrated Washington's "commitment to countering terrorism." 'Terrorist designations play a critical role in our fight against this scourge and are an effective way to curtail support for terrorist activities,' he added. The US designation of BLA and Majeed Brigade as terrorist entities can be pivotal in restricting financial support and other aid to these groups. The US move comes amid a spike in militant violence in Pakistan's Balochistan, which Islamabad has blamed on India and Afghanistan. New Delhi and Kabul deny the allegation. Pakistan had already proscribed the Majeed Brigade as a terrorist entity in July 2024. The foreign office said the country 'remains unwavering in its resolve to protect its citizens and eliminate terrorism in all its forms and manifestations' and 'committed to cooperating with the international community to overcome this common challenge.' Separatist groups operating in the mineral-rich region of Balochistan accuse the central government of exploiting the province's resources to fund development elsewhere in the country. The federal government denies the allegations and says it is working for the uplift of local communities in Balochistan.
