As the Chinese accumulate more and more gold, they’re dumping U.S. Treasuries. That raises an important question: who is going to keep funding the federal government’s borrowing spree? China offloaded another $22.7 billion in U.S. Treasuries in February, according to the latest data from the Federal Reserve. That dropped its total holdings to $775 billion.
The biggest holder of U.S. deb are the social trust funds of Social Security. Government agencies, mutual funds, ETFs, Banks & insurance, & State Agencies makeup the rest. What is happening in China is a three part series, I'll try to make it short. China's vast holdings to reverse are used to manipulate their currency-yes they get dividends, capital gains, and interest from their holdings, but in reality is they have allowed to devalue their currency since joining the WTO. Between Covid, energy crisis, & their property bubble imploding, keeping their currency lower to simulate their export driven investment economy is the remedy. Another reason is gold is officially recognize as a tier 1 risk free assets-Basle III. They are use gold to balance their books against the value of their debt holdings, it's a hedge. The last part is culture China has a distrust in paper assets-as the genesis of paper fiat-they are aware of the ills it brings.
China wants to be on top - they are really working at it - we are working our way to the bottom I think! They are making their fiat currency worth something now it is backed by more gold! It is also backed by minerals - they have they wrapped up too!
Well its simple. They are trying to kill the US Dollar.
The biggest holder of U.S. deb are the social trust funds of Social Security. Government agencies, mutual funds, ETFs, Banks & insurance, & State Agencies makeup the rest. What is happening in China is a three part series, I'll try to make it short. China's vast holdings to reverse are used to manipulate their currency-yes they get dividends, capital gains, and interest from their holdings, but in reality is they have allowed to devalue their currency since joining the WTO. Between Covid, energy crisis, & their property bubble imploding, keeping their currency lower to simulate their export driven investment economy is the remedy. Another reason is gold is officially recognize as a tier 1 risk free assets-Basle III. They are use gold to balance their books against the value of their debt holdings, it's a hedge. The last part is culture China has a distrust in paper assets-as the genesis of paper fiat-they are aware of the ills it brings.
China wants to be on top - they are really working at it - we are working our way to the bottom I think! They are making their fiat currency worth something now it is backed by more gold! It is also backed by minerals - they have they wrapped up too!