U.S. debt is no longer an asset, but a "hostage". You think we're selling stops? Big mistake! This is actually a "general mobilization before the war": systematically liquidating the enemy's assets, just to exchange them for hard currency to win the next war!
The central banks of many countries around the world are now doing the same thing, quietly and systematically withdrawing from the dollar system and re-embracing gold, and the various discussions triggered by the sale of U.S. debt in China are just a "small slide" in this big change.
The foundation of trust has been shaken, the U.S. government's fiscal deficit is out of control, and the debt snowball is getting bigger and bigger. The amount of money paid in interest alone each year exceeds the huge military expenditure. What to pay off your debt? Only new debt can be issued to repay old debt. Even the top credit rating agencies can't stand it, stripping the United States of its highest credit rating.
More seriously, the United States has not hesitated to use the financial system as a weapon against its adversaries. Whether you are Russian or Iranian, your overseas assets can be frozen or even confiscated overnight as long as Washington is unhappy. This is tantamount to declaring to the world that your money in the United States may no longer belong to you at any time. The so-called financial safe haven has become a huge political risk exposure in a blink of an eye.
The market reaction will not lie.Now as long as there are institutions to sell a little US bond, the price will fluctuate sharply, which indicates that there are not enough buyers willing to pick up.Foreign investors are getting fewer and fewer, the Federal Reserve has to personally leave the market, print banknotes in the left hand, and buy the government bonds issued by the right hand.And the market has only a little confidence left, so is slowly drained.
In the face of an asset that is both unsafe, yield-free and unattractive, central banks around the world have a striking coherence of choices. Everyone is systematically reducing credit assets in exchange for entity gold that is not controlled by any single country.
In recent years, the amount of gold purchased by central banks around the world has set historical records again and again. From Poland in Eastern Europe to Turkey in the Middle East, more and more countries are joining the "gold rush" team. Central banks in almost all countries have made it clear that they will continue to increase their holdings of gold reserves in the future. Returning to gold has become a tacit understanding among central banks around the world.
Globally, China is one of the countries that have acted most resolutely in this trend. Gold reserves have grown for several consecutive months, with an unprecedented scale. At the same time, the size of U.S. Treasury bonds held has dropped to the lowest point in more than a decade. The strategic intention of this increase and decrease could not be clearer, that is, to use real hard currency to hedge the huge uncertainty of credit assets.
In contrast, America's traditional allies are much contradictory. Washington called for them to buy more U.S. debt, but few responded. Even the most important allies, Japan and Britain, are only buying symbolically, which seems insignificant in the face of the global sell-off tide. Their actions are more like accomplishing a political mission than motivated by genuine market confidence.
Selling U.S. bonds and buying gold are just defenses. More far-sighted countries are already taking the initiative to build a future beyond the dollar.
Yuan cross-border payment systems are growing explosively, offering new options for global trade. Today, more than 70 percent of trade between China and Russia has begun to be settled in their own currencies.
After all, the global asset migration we are now experiencing is not about overthrowing who overnight, but about building a solid wall of protection for our country in this world full of variables.
Source: July China reduced US debt holdings by $ 25.7 billion, holdings reached a 16-year low in 2025-09-19 Observer Network
The central banks of many countries around the world are now doing the same thing, quietly and systematically withdrawing from the dollar system and re-embracing gold, and the various discussions triggered by the sale of U.S. debt in China are just a "small slide" in this big change.
The foundation of trust has been shaken, the U.S. government's fiscal deficit is out of control, and the debt snowball is getting bigger and bigger. The amount of money paid in interest alone each year exceeds the huge military expenditure. What to pay off your debt? Only new debt can be issued to repay old debt. Even the top credit rating agencies can't stand it, stripping the United States of its highest credit rating.
More seriously, the United States has not hesitated to use the financial system as a weapon against its adversaries. Whether you are Russian or Iranian, your overseas assets can be frozen or even confiscated overnight as long as Washington is unhappy. This is tantamount to declaring to the world that your money in the United States may no longer belong to you at any time. The so-called financial safe haven has become a huge political risk exposure in a blink of an eye.
The market reaction will not lie.Now as long as there are institutions to sell a little US bond, the price will fluctuate sharply, which indicates that there are not enough buyers willing to pick up.Foreign investors are getting fewer and fewer, the Federal Reserve has to personally leave the market, print banknotes in the left hand, and buy the government bonds issued by the right hand.And the market has only a little confidence left, so is slowly drained.
In the face of an asset that is both unsafe, yield-free and unattractive, central banks around the world have a striking coherence of choices. Everyone is systematically reducing credit assets in exchange for entity gold that is not controlled by any single country.
In recent years, the amount of gold purchased by central banks around the world has set historical records again and again. From Poland in Eastern Europe to Turkey in the Middle East, more and more countries are joining the "gold rush" team. Central banks in almost all countries have made it clear that they will continue to increase their holdings of gold reserves in the future. Returning to gold has become a tacit understanding among central banks around the world.
Globally, China is one of the countries that have acted most resolutely in this trend. Gold reserves have grown for several consecutive months, with an unprecedented scale. At the same time, the size of U.S. Treasury bonds held has dropped to the lowest point in more than a decade. The strategic intention of this increase and decrease could not be clearer, that is, to use real hard currency to hedge the huge uncertainty of credit assets.
In contrast, America's traditional allies are much contradictory. Washington called for them to buy more U.S. debt, but few responded. Even the most important allies, Japan and Britain, are only buying symbolically, which seems insignificant in the face of the global sell-off tide. Their actions are more like accomplishing a political mission than motivated by genuine market confidence.
Selling U.S. bonds and buying gold are just defenses. More far-sighted countries are already taking the initiative to build a future beyond the dollar.
Yuan cross-border payment systems are growing explosively, offering new options for global trade. Today, more than 70 percent of trade between China and Russia has begun to be settled in their own currencies.
After all, the global asset migration we are now experiencing is not about overthrowing who overnight, but about building a solid wall of protection for our country in this world full of variables.
Source: July China reduced US debt holdings by $ 25.7 billion, holdings reached a 16-year low in 2025-09-19 Observer Network