On September 23rd, The Geller Report reported the following headline:
World’s second-largest economy offloaded US$13.6 billion worth of US debt in July
But China still remains the second-largest foreign holder of US Treasury bills, having been surpassed by Japan in mid-2019
The article reports:
Amid persistent concerns over the safety of its overseas assets – most of which are US dollar-denominated – China has slashed its holdings of United States Treasury bills for the fourth straight month.
The world’s second-largest economy offloaded US$13.6 billion worth of US debt in July, bringing China’s holdings to US$821.8 billion, according to the latest data from the US Department of the Treasury.
China’s overall holding of US debt remains at a 14-year low, after reaching that level in June.
Beijing has been continuously cutting China’s US debt holdings since early 2022, with two exceptions – in March of this year and July 2022, when it increased holdings by US$20.3 billion and US$320 million, respectively.
Beijing remains the second-largest foreign holder of US Treasury bills after being surpassed by Japan in June 2019.
Keep in mind that we are seeing a global move away from the U.S. Dollar as a global currency. That has a lot to do with the reckless spending by our government. As oil is traded in currency other than PetroDollars, we can also expect a move toward digital currency. There is nothing wrong with digital currency as long as it is not Central Bank Digital Currency, which gives the government control over how much money you earn and how you spend that money. If you are going to invest in digital currency, treat it like buying a stock–do your research first! Meanwhile, keep an eye on China as it unloads American debt.