Both China and Japan are quietly selling US Treasuries, spiking yields. The Fed. may have to start buying (QE) to stop the slide.
Can’t see much chance of interest rate cuts
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I am calling this the United States Rexit. You see, we have the same morons over here that have no clue of what they are doing.
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Here’s what Google AI says:
{ *AI Overview
+8
China began decreasing its holdings of US Treasury securities in a noticeable way since 2013, with its holdings reaching a new low of $767.4 billion by the end of March 2024, according to Ecns.cn. This trend has been ongoing, with its holdings staying below $1 trillion since April 2022, according to the Global Times.
Key points about the decline:
Gradual reduction:
The decrease in holdings has been gradual, not a sudden dump.
Reasons for the decline:
Several factors contribute to this, including concerns about the US federal deficit, the global move toward de-dollarization, and the declining profitability of US Treasury bonds due to interest rate hikes.
Impact on the US economy:
While China’s reduced holdings are a factor, they don’t dominate the overall US debt market, as noted by the Global Times. The US is primarily indebted to itself, with the Federal Reserve being the largest single holder of US national debt.
Diversification:
China has been diversifying its foreign exchange reserves, shifting some investments away from US Treasuries towards gold and other assets*. }
Since 2013.
Due to de-dollarization
Belt n Road Initiative
BRICS+ goals.
Etc.
Shifting investments to gold (and other assets).
Remember the motherload of gold China “found” a couple months ago?
They are keeping that physical gold within their control.
In addition, YT sources say that China has been actively buying up physical gold, such that (IIRC) China now has 20k tons.
China officially claims 2k tonnes.
{ China officially reports holding 2,279.56 tonnes of gold. This is a significant increase from its 1,948 tonnes reported in 2019. China’s gold reserves now account for 5.5% of its total foreign exchange reserves. While this is the officially reported amount, there’s speculation that China may hold even more gold than publicly stated. }
But many experts are skeptical, and say China has a LOT more.
{ *AI Overview
+3
Yes, Chinese law prevents the export of raw gold and silver, and some gold products, except under specific circumstances. The People’s Bank of China (PBC) controls all gold and silver exports and requires licenses for general trade, processing trade, and import/export between special zones. However, gold export to Shanghai and Hong Kong is allowed.* }
The US by contrast, has 8k tons. IIRC.
{ *AI Overview
+4
As of 2024, the United States has 8,133 metric tons of gold reserves, the largest in the world. This is worth about $480.84 billion, notes Madison Trust. * }
Japan n US debt:
{ * Japan has significantly reduced its holdings of US Treasury bonds, a shift in investment strategy driven by rising yields on Japanese government bonds and concerns about the US economy. This trend has been noted since the beginning of 2025, with Japan’s holdings falling to their lowest level since January 2020. This action has been interpreted as a move away from relying on US debt as a primary investment vehicle and towards potentially riskier but potentially more profitable options.* }
Japan been decreasing US debt holdings this year.
All according to Google AI.
FWIW.
ralph
BRICS+ apparently wants gold-backed currency.
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From METAR in 2022:
Perpetual topic.
ralph
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Won’t be at all surprised to see Canada and various European Nations join the parade. He’s managed to set the whole world against us.
Smart cookie, if the cookies are made with cyanide and rat poison.
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