China Dumps $39.8 Billion in U.S. Treasuries — Is the U.S. Economy at Risk?

The rivalry between the U.S. and China over interest rates has intensified, with recent moves by the Federal Reserve drawing global attention. After a 50 basis point rate cut by the Fed, former President Trump criticized the decision, accusing it of being politically motivated to sway the November elections. Meanwhile, China reduced its holdings of U.S. Treasury bonds by $27 billion, raising questions about the connection between these developments.

China's reduction in U.S. Treasuries is not just a financial move, but a calculated strategy to challenge American economic dominance. By diminishing its reliance on U.S. debt, China signals its intent to shift towards a multipolar financial system, challenging decades of American hegemony. This decision comes as the U.S. struggles to maintain stability in the face of internal economic challenges and growing global uncertainty.

As U.S. stock markets hit historic highs following the rate cut, Boeing’s stock plunged, signaling underlying economic tensions. Amid the ongoing layoffs at Boeing and the broader consequences of Reagan-era policies that prioritized the wealthy and undermined unions, the U.S. continues to grapple with significant income inequality. The export of U.S. capitalist ideology has only deepened global economic disparities, leading to questions about the sustainability of America's financial power.

The Federal Reserve’s actions, while intended to stabilize the economy, may inadvertently exacerbate domestic inequality and global financial volatility. As China strategically reduces its U.S. Treasury holdings, it underscores the fragility of U.S. economic dominance. This video explores the implications of these developments, analyzing how China’s moves could reshape the global financial landscape and challenge U.S. economic leadership in a multipolar world.

[Fortune-mdjk]

China should dump all US Treasuries to let these politicians from both sides of the aisle in Congress know that decoupling with China will get them nowhere in this time of interdependency.

[robertwang]

I wouldn’t hold IOUs from someone that owes 36T and increasing annually and spending like there is no tomorrow, spending on weapons, military bases, funding wars while your house is crumbling ( infrastructure ). Such an irresponsible govt scares all IOU holders. You need to borrow more just to pay me the interest on my IOUs. How can that be a good thing ?

[jimmygoh]

USA.. You owe, you pay.. Never borrow to muster strength.. It never pays😂😂😂

[emersonandriao]

What???
"Moreover, SOVEREIGN nations like Japan..."
Japan? Sovereign? Really?

[anthonychuan]

House of Cards, Humpty Dumpty & USD have the same Destiny.

[thewiseone]

The US wouldn't mind rising debt ceiling to the sky because they intended NOT TO PAY interest or principle once the US couldn’t afford them. It better to get rid of US assets as fast as possible before the mad exodus commences and prices go rock bottom.
If any country insists on getting paid, the US will turn their barrels towards that country. Would you dare to insist on your interest any more? Mark my words!

[termyfl]

China can't dump US Treasury bonds in 1 go, it will appreciate RMB thus disadvantage to China exports

[windydragon]

Why fret? US can easily give more to Zalensky 🤡 to spend.

[jantarasjear]

What go up, must come down, that's the truth.

[willeisinga]

Sanctions Tariffs Taxes will Save US. Horses and Carts made in US for National Security. US goes Amish. 😅

[onedaywewill]

The truth about what happened will be lost to posterity

[zizimai]

China hold alot of US treasuries. I fear China may not be able to dispose all in coming years as US will default in interest & bonds become worthless.

[Jodoe]

No problem there.
USA has OVERCAPACITY in printing USD out of thin air.

[SimonLee-yj]

Thatcher went along with Reagans' neo-liberal policies and the majority of brits are now poorer, the gap between rich and poor has never been wider and job security doesn't exist.

[victorteo]

Would the US with $36 Trillion Dollars in debt by able to pay? Know how much each American owes?

[Paul-H-Wolfram]

China should continue to dump their holding on the U.S. Treasuries, it is very risky for any country to hold on to their U.S. Treasuries because the U.S. are unable to pay back on their national debt and may default on their debt payment at any time. Japan should hold on to their existing U.S. Treasuries as long as possible and maybe buy more new Treasury bonds issued by Yellen.😁

[bertanelson]

This is an amazingly accurate & truthful video. Financialization has been the bankrupt focus leaving workers to fight for scraps.

[RonnyAndersson-qb]

$1.2T in interest alone. $39B doesn't even register.

[XsunFlxwerLol]

USA is mad and will put more sanctions 🤣🤣.

[roberthall-mieu]

Can’t get my head round these astronomical figures is this roughly 1 Percent or .1 Percent of the total Dept