UNDER PRESSURE! China & Japan May Consider Cutting Another $700 Billion in U.S. Debt.｜AsianQuickTake

In today’s discussion, we delve into China’s potential decision to further reduce its $700 billion US debt holdings and the significant credit pressure this could impose on the United States. In a world of economic uncertainty, China’s ongoing reduction of US Treasury bonds has garnered widespread attention, sparking debates about its motives and far-reaching impacts on global financial markets. The implications of China’s move are multifaceted. It may compel the US government to seek new buyers or raise interest rates for fundraising transactions, potentially leading to liquidity tightening and profound effects on the US market. Historically, China held substantial US Treasury bonds, but recent years have seen a gradual reduction in their holdings. As of now, China’s holdings stand at approximately $778.1 billion, triggering discussions about its motivations. The Chinese yuan’s recent surge against the US dollar signals an established trend of the dollar’s depreciation. This trend is influenced by factors such as the Federal Reserve’s interest rate hike cycle and the potential for a US economic downturn. Market forecasts indicate a shift in the Federal Reserve’s monetary policy, potentially decreasing US Treasury bond yields. A resurgence in US bond yields could exert substantial selling pressure on the dollar. The declining share of the dollar and US Treasury bonds in global central bank reserves is attributed to the US frequently adjusting the dollar index cycle and the real yield, adjusted for inflation, remaining negative. This contributes to concerns about implicit defaults. Both China and Japan may significantly reduce their $700 billion US bond holdings, especially if risks of implicit default and escalating US deficits persist. The global trend of de-dollarization could intensify, impacting the US. US bonds, once fundamental support for the dollar, are increasingly unsustainable, making gold a safer investment. Without gold support, the dollar’s position as a global asset anchor is shaky. The US economy faces challenges due to high debt, deficits, interest rates, and low growth. A historic sell-off in the US bond market is anticipated, raising questions about the dollar’s role. Global central banks are questioning whether US bonds can continue as risk-free investments. Proposals like HR9189 aim to restore the US dollar to the gold standard, signaling concerns about its long-term role. Several US states have declared gold as legal tender, granting it functions similar to the dollar. Gold’s stability is drawing attention for international reserve assets and financial transactions. The status of major reserve currencies is subject to change, and gold may play a significant role in the evolving monetary landscape. As countries reposition their currencies, the US may contemplate repaying its debt with gold. The US Constitution mandates repayment to US bondholders, emphasizing the importance of honoring financial commitments. That wraps up today’s video. Please consider liking, subscribing, and hitting the notification bell to stay updated on developments in business, economic history, international relations, geopolitics, and world affairs shaping our global landscape and civilization. Thank you for watching, and we look forward to seeing you in our future videos. Tags: China, US Treasury Bonds, US Debt, Global Economy, Federal Reserve, Dollar Depreciation, De-dollarization, Gold Standard, Financial Markets, US Economy, Global Central Banks, Reserve Currency, Economic Trends, US Bond Market, Monetary Policy, US Dollar, International Relations, Geopolitics, US Debt Crisis. 💯TOP 3 Video China Shocks Yellen With Massive Selling of U.S. Bonds and Buying of Gold ▶ China to Accelerate Dumping of Up to $800bn U.S. Debt ▶ Swiss Sells $36.4 billion U.S. Treasuries ▶ ━━━━━━━━━━━━━━━━━━━━━ ✅ COPYRIGHT DISCLAIMER Asian Quicktake Doesn’t Fully Own Some of the Materials Compiled in Its Videos. It Belongs to People or Organizations Who Ought to Be Respected. If Used, It Falls Under the Following Provisions: Copyright Disclaimer Section 107 of the Copyright Act 1976. “Fair Use“ is Allowed for Purposes Such As Criticism, Comment, News Reporting, Teaching, Scholarships, and Research. ━━━━━━━━━━━━━━━━━━━━━ ✅ If You Are the Owner of the Materials Used in This Video, Let us Know in the Comments or Send a Email to me. We Will Follow Your Request Immediately. ━━━━━━━━━━━━━━━━━━━━━ ✅ FINANCIAL DISCLAIMER This Channel’s Content Should Not Be Interpreted or Construed As Financial Advice. We Are Not, and Do Not Claim to Be, an Attorney, Accountant, or Financial Advisor. This Channel’s Content is Not a Substitute for Financial Advice and is Solely for Entertainment Purposes.