CHINA Sell Off 39% of US Treasury: What's Next?

The U.S. government continues to regard Treasury securities as stable and secure investment options, especially during economic uncertainties. Despite this, there are growing concerns about the national debt, which has escalated to over $35 trillion as of mid-2024. This figure has doubled in the last 15 years, highlighting a trend of increasing government expenditure and debt accumulation.

The U.S. government's rising debt poses several long-term economic risks, notably due to the increasing cost of servicing this debt amidst rising interest rates. These higher rates make debt servicing more expensive, potentially leading to inflation and increased borrowing costs, which could crowd out private investment and necessitate higher taxes or reduced government spending.

Compounding these concerns is the U.S.'s reliance on foreign investment to fund its national debt. Notably, China, which was once the largest foreign holder of U.S. debt, has reduced its holdings significantly, from a peak of $1.316 trillion in 2013 to about $749 billion by mid-2024. This reduction is part of a broader trend of decreasing foreign ownership of U.S. debt, driven by geopolitical shifts and policy changes both in the U.S. and abroad. Such a reduction in foreign investment could force the U.S. to offer higher interest rates to attract new investors, thereby increasing borrowing costs further.

[rezakarampour]

' The End Of American Empire Is Here . '

[HappyPandaBear]

AWESOME! Seeing is believing & that day cannot come soon enough - Can’t wait! 👍🏼🤞🤞🤞

[karim]

Western hypochrisy is being called out

[wisdomtan]

Once the USD usage dropped to 50 percent Hell will break loose.

[ebrimakrubally]

Good China 🇨🇳 go on . Make BRICS bigger

[puti]

Imperialistic America & Americans never bothered to learn Lessons from the Roman Empire ( Imperialistic ) now Forgotten. America's Fate is sealed by their Own Actions.

[kasbms]

Brics gdp is bigger than g7 now. Usa will lose their influence soon..thanks to their unconditional support to 🇮🇱

[dannybuoy]

De-dollarization is well underway and unstoppable. 👍👍👍

[jimcysiah]

Most won't buy US Treasury bond.its printed paper, no asset backing or gold backing

[Grace.h-to]

The U.S. economy can actually get better if only the govt can start making better decisions for the sake of it's citizens, cos' they've really made life more difficult for its residents.inflation has left the less haves bearing the brunt of the burden. It’s already eating into my retirement portfolio. Like where else can we invest our money with less risks?

[TienLam-tb]

👍Thank you for the most updated insightful information💐😊

[richardliu]

You did it to yourself but introducing ll the stuipd policies. What you did, that is what you get.

[charlesprasad]

Wonderful news Sir thank you for the truth

[MickZorro]

What is the foundation of the strength of the American economy, with countless factories closed
because of being unprofitable and rusting away, while the country is drowning in unsustainable
and continuously growing debt, and being able to pay off some of its debts, only with new loans?

[NHASUNAIN]

BRICS coming
Bric by bric

All must support

[lancewood]

Waiting for the US to recede back 250 years.

[oliveirlegume]

We count on BRICS for a multipolar world

[eskapadela]

The US economy will start flying very low but will not fall.
In the meantime, China, with the help of the BRICS+, will start flying high with great confidence and will thus take the lead in the world economy.
With this new economic revolution, new good economic times will come for everyone, especially for the BRICS+.
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[michaelloong]

Please China do not continue to sell off US treasury as you make grand mother Janet Yellen many sleepless nights. She may suffer from heart attack as she has told many people in the US that the US doing OK and can support two wars, one in Ukraine and one in Gaza.

[mv]

World got crazy if accepting US$ as reserve currency based on unpayable debt!