🔴 MOVING FAST: China Sells $21 BILLION In U.S. Treasuries, The Largest D...

.BILLIONS DUMPED 

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hi everyone welcome back and welcome if you're new  to my channel I'm very excited to have you Japan  

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and China are the two biggest foreign US debt  holders Great Britain Belgium Cayman Islands and  

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Canada hold massive amounts of us treasuries  too both Japan and China have been actively  

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selling their US debt Japan started reducing its  investments in 2021 it sold some but it's still  

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holds uh a massive amount of American debt right  now well this is not the case with China China has  

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been quite rapidly reducing its Holdings since  2021 recently The selloff Accelerated and so in  

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this video I will go over China getting rid of  the US debt in the context of the latest events  

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China used to be the biggest investor not too  long ago just 5 years ago but starting in 2018  

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around the same time when the trade war with the  us ramped up so to speak China's Holdings started  

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to decline and the following year in 2019 Japan  took the first spot as the biggest US debt holder  

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the tariffs and or quotas on Imports that were  imposed by the us back in 2018 were likely the  

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main catalyst at that time that drove Beijing  to effectively change its strategy at this time  

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China's Holdings of US debt is at the lowest  level in 14 years since 2009 the mainstream  

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media is trying to tell us while naturally this  has to be because China is desperate for cash it  

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is going through a rough Economic Times it needs  cash and so because it needs cash this is why it's  

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selling us treasuries otherwise why would it even  consider selling US debt the mainstream media is  

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still trying to sell this narrative while many  other countries including Japan and Saudi Arabia  

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are getting rid of us treasuries too is that  a coincidence what is the truth well the truth  

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is that there are several important reasons why  us treasuries look less attractive the 10-year  

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US Treasury yield just hit 5% last week remember  that bond yields and bond prices move in opposite  

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direction so a rising yield means that the demand  for treasury bonds is falling when a central bank  

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raises interest rates you treasury bond yields  increase and then this in turn makes bond prices  

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decline with trillions of dollars worth of US  debt sitting on their books there is truly no  

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reason to hold on to it in this environment which  is why foreign countries are incentivized to sell  

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in order to mitigate the risk of taking a loss  in the near future foreign countries are aware  

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that the United States economy is not what it  used to be be so as an investor this makes you  

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really think twice whether the risk is worth  the promise of a return in the future when  

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a government issues massive amounts of debt it  has to pay interest on it as us treasuries yield  

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increases um it means that the government has to  be in a position to keep paying that interest to  

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all of this Bond holders it cannot default but  the problem is the United States government has  

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has been running deficits every single quarter  so even though it can print cash literally out  

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of thin air only to devalue it more and more as  we know it still needs to meet its obligations a  

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search and interest expense is a red flag to  foreign investors who believe that a 10 year  

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or 30-year use treasury is just too risky to  hold now nobody knows what will happen a year  

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from now maybe even two weeks from now let alone  a decade this is one of the reasons why there is  

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less demand for us treasuries in 2022 the US  government spent 35% more to service its own  

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debt than a year prior soon it will surpass  any other expense category such as Medicare  

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Medicaid or defense the higher the federal funds  rate is the higher the yield is likely to become  

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meaning it will cost us exponentially more  to carry our national debt the committee for  

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responsible federal budget expects payments to  Triple to $1.4 Trillion in8 Years in8 Years by  

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2032 by 2053 the interest payments are projected  to Surge to 5.4 trillion so in three decades or  

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sooner just depending on how things go with the  current geopolitical events interest expense will  

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consume 35% of the United States federal revenue  a far more important reason behind China selling  

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its Holdings of the US treasuries is the foreign  policy of the United States specifically its love  

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to impose economic sanctions while it sounds  great on paper and it is something that the  

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general public doesn't really question this is  a weak strategy that will never fail to backfire  

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weaponizing the global Reserve currency is the  fastest way to force foreign Nations to seek  

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Alternatives at all possible costs if anything  it makes more sense to hold gold that cannot  

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be turned against you that is the most basic of  all instincts it's just trying to lower your risk  

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right especially when everything is at stake when  your Central Bank Reserves are in US Dollars when  

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the US froze approximately $300 billion dollar  worth of Russian Central Bank assets that were  

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held abroad bee was not the only country that took  notice and started to actively seek Alternatives  

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as it sells us treasuries China invests in gold  and it builds up its gold reserves China learned  

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from the mistakes of others clearly specifically  from Russia some of you might remember that not  

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too long ago Russia used to be one of the main  US Treasury holders too it heavily invested in  

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the US economy as you can see on your screens  back in 2013 Russia held as much as 150 billion  

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dollar worth of us treasuries but absolutely  not coincidentally when the 2014 government  

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coup in Ukraine overseen by nand who was handing  out cookies to prepaid protesters on the maidan  

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when the coup overthrew yanukovich who was the  last democratically elected Ukrainian president  

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and installed a president um who would do as  he is told which he did we see that starting  

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in 2014 Russian Holdings of the US treasuries  consistently declined in 2022 Russia held about  

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$2 billion worth of US debt so it is clear that  the sanctions economic turmoil and the constant  

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escalation of geopolitical tensions Drive foreign  investors away from the US treasuries effectively  

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forcing the US Treasury Department to issue more  debt further driving up its yields and with that  

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the cost to service the debt running more and  more deficits in the future as you can see very  

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well this reality is a vicious cycle isn't  it now very quickly a quick thank you to our  

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