China is dumping US treasuries and buying Gold
Posted: Apr 25, 2024
- China is selling U.S. Treasuries and buying gold - China is reducing its exposure to the dollar due to concerns about U.S. foreign policy impact - China has been stockpiling gold for over a year - U.S. Treasury faces funding problems as China and other countries decrease holdings - Federal Reserve is the largest U.S. bondholder, but is currently not buying Treasuries - Treasury yields continue to rise despite hopes of a Federal Reserve rate cut - Fed may need to implement another round of quantitative easing to buy U.S. debt, leading to inflation taxes for the public
Summarized top reddit comments: - China is not dumping US treasuries but stopped purchasing new bonds and letting old ones mature before investing in gold - Speculation that China is reducing US treasury holdings to limit US influence and pressure from sanctions - Impact of sanctions warfare on the dollar's status - Suggestions of potential military action by China against Taiwan but unlikely due to logistical challenges - Predictions of market reactions like TSM stock plummeting - Concerns about US debt and interest payments - Remarks on China's business savvy - Criticism of US economic policies and fiscal dominance over China with low-yield treasuries
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