U.S. Assets COLLAPSE As China Cancels Buying and $12 TRILLION Dump Plan by EU

 

 

This economic war is accelerating in plain sight. Countries are no longer quietly drifting from the United States — they are actively pricing it out. Canada strikes trillion-dollar deals with China, Washington openly discusses taking Greenland, and the bond market responds instantly with spiking yields and slipping confidence. Capital begins to move. What began as tariffs and trade imbalances has evolved into a profound question: can the global financial system survive when instability originates from the very center of power? This video breaks down why a territorial threat in the Arctic has sent shockwaves through markets, alliances, and the foundations of American dominance. 

 

Donald Trump escalated further, declaring no obligation to prioritize peace and claiming the US deserves repayment for its NATO contributions, transforming mutual defense into a transactional arrangement. NATO's core principle of inviolable borders within the alliance now appears conditional, eroding trust rapidly. Allies recalculate risks, and every security guarantee feels temporary. This reflects a modernized Monroe Doctrine applied inward — allies as extensions of US strategic space, cooperation as leverage. Greenland will be secured, nicely if possible, forcefully if necessary

 

For Europe, it's a wake-up call: political alignment offers no protection against territorial pressure. Markets delivered their verdict over the last five days. US Treasury bonds sold off sharply, with the 10-year yield jumping from 4.13% to 4.26% — a violent move in bond terms, reaching the highest since September 2025. This reprices everything: mortgages, corporate borrowing, government costs. Interest payments already exceed $1 trillion annually — more than Medicare or defense — and are projected to hit $1.8 trillion by 2035. Without cheap capital, the US enters a vicious loop of rising rates, deficits, and borrowing.  

 

China accelerates its exit from US debt, selling another $6 billion in November, dropping holdings to $682 billion — the lowest since 2008. No longer recycling trade dollars into Treasuries, Beijing redirects capital to gold, equities, supply chains, and global investments. Dollar assets increasingly look like a melting ice cube amid political volatility. Europe holds over $12 trillion in US assets, including $3.6 trillion in Treasuries. Small shifts could spike yields further, hitting corporate bonds and equities hard. Financial retaliation is asymmetric and devastating — when capital stops flowing, power erodes without easy reset. The system survives only as long as others fund it. If Europe stops, what leverage remains for Washington? 

 

 

 

Source:       Economic Shift