RUDE Awakening - China Orders BANKS to CUT US Treasury Holdings as the Dollar's Decline Ramps Up

 

 In today's video, I discuss the following topics: 

 

• China has quietly instructed major banks to limit and gradually reduce exposure to U.S. Treasuries — delivered verbally, with no formal announcement.  

• Regulators framed the move as risk management, citing concentration risk and rising bond market volatility, not geopolitics or U.S. default risk.

• China’s official state Treasury holdings remain untouched for now, highlighting the difference between central bank policy and commercial bank balance sheets.

• Markets reacted immediately: Treasury prices dipped, yields rose, and the dollar weakened — showing how sensitive investors are to shifts in foreign demand.

• China has already been reducing U.S. debt exposure for over a decade, with total holdings now near their lowest level since 2008.

• This move reinforces a broader global trend away from dollar-denominated assets, as discussed in my recent interview with Larry McDonald. 

 

 

Source:   World Affairs In Context