No Buyers Left: $10 Trillion DEBT MELTDOWN as China Sell Off US Treasuries скачать в хорошем качестве

No Buyers Left: $10 Trillion DEBT MELTDOWN as China Sell Off US Treasuries

The US debt system is starting to transmit stress directly into everyday costs. Rent, mortgages, groceries, and even credit card interest are all linked to the Treasury market, because Treasuries are the base “price” for borrowing across the economy. China has been slowly exiting US Treasuries for years. Over roughly the last 10 years, Beijing has cut its Treasury holdings about in half. China is still the 3rd largest foreign holder, which is why a steady reduction matters: it signals a structural shift, not a short term trade. The incentive is obvious. The US can freeze assets, expand sanctions, impose tariffs, and pressure banks through the dollar payment system. For countries exposed to that leverage, “dedollarization” is less about ideology and more about reducing political risk. BRICS members and other emerging economies are testing trade in local currencies for commodities and building alternative payment rails, while private capital in those countries trims US bonds and stocks and adds assets they feel are safer or more controllable. A major confidence shock came from credit ratings. Moody’s cut the US from Aaa to Aa1, meaning the US no longer has a perfect triple A rating from any of the three big agencies. The downgrade rationale was widening deficits and surging interest costs with no credible plan to reverse the trend. Markets reacted with higher yields: the 30 year Treasury moved above 5%, and the 10 year pushed through 4.5%. Those moves showed up fast in consumer borrowing, with 30 year fixed mortgage rates rising toward about 6.9% to 7%, 15 year mortgages above about 6.2%, and average credit card interest near 20%, while the federal funds rate sat around 4.25% to 4.5%. This followed earlier downgrades by S&P in 2011 and Fitch in 2023. At the same time, who buys Treasuries is changing. Since the Fed’s rapid rate hikes in 2022, more demand shifted from “sticky” central banks to price sensitive private investors. Reports also describe Chinese regulators telling major banks to curb future Treasury purchases and gradually cut positions; Chinese banks hold about $298B in dollar denominated bonds. The biggest pressure point is the calendar. About $9.6T of US marketable debt matures over the next 12 months, roughly 33% of outstanding marketable public debt, about 2 times the pre 2020 level. Much of it was issued near 0%, but refinancing now occurs around 4% to 5% yields. A 2 percentage point increase on $9.6T implies about $192B more interest per year. Net interest is projected to exceed $1T per year around 2026, potentially surpassing defense spending. As foreign demand weakens, more debt gets absorbed domestically by banks, pensions, and Social Security, even as banks sit on hundreds of billions in unrealized bond losses, echoing the Silicon Valley Bank playbook. If private and domestic buyers balk, the final backstop becomes the Fed, pushing the system toward more QE and currency dilution. #China #USeconomy #Trump _______________________________________ Interesting videos: U.S. Demands BRICS Cancel Non-Dollar Trade    • U.S. Demands BRICS Cancel Non-Dollar Trade...   U.S. Lied to China — Now China’s Getting Revenge by Dumping DOLLARS!    • U.S. Lied to China — Now China’s Getting R...   China Just Formed a New $25 Trillion Alliance Bigger than BRICS    • Trump in Shock: China Just Formed a New $2...   $40 Trillion Market GONE? China Cancels Trade in USD!    • $40 Trillion Market GONE? China Cancels Tr...   _______________________________________ Disclaimer: The information presented on this channel should not be interpreted or relied upon as professional advice for any specific fact or circumstance. This channel and its content are meant for entertainment and informational purposes only. The content provided offers a general overview of a topic and is not a replacement for professional services. Always seek the guidance of a finance or legal professional who can address your specific situation. The opinions expressed are solely my own, and only publicly available information has been used.