ALERT: BRICS Giant Begins Dumping U.S. Treasuries…

De-dollarization seems to be a topic that garners more and more attention as U.S. deficit spending continues to grow and the national debt balloons to over $32 trillion dollars.

Any creditor would feel uneasy with allowing a borrower who is consistently piling on more debt to continue to borrow money.

Moreover, any creditor would cease lending altogether if they figured out that the borrower was defrauding them by devaluing their creditor claims.

Yet this is the situation the U.S. Treasury and the federal government find themselves in.

China, the leader of the BRICS economic bloc is the second largest foreign holder of U.S. treasuries falling short only to Japan.

According to recent data, following the end of the BRICS summit, China and Saudi Arabia have begun offloading roughly $114 billion in U.S. debt.

Daily Hodl provided this critical update:

New numbers from the Treasury Department show that China trimmed its US treasury holdings from $938.8 billion in June 2022 to $835.4 billion in June 2023 – a decrease of about $103.4 billion in just 12 months.

Popular cryptocurrency influencer Lark Davis broke down recent moves from BRICS in one of his latest videos.

One analyst explained: “China invests heavily in U.S. Treasury bonds to keep [Renminbi cheaper] its export prices lower for it is largely dependent on the export-led growth.”

China invests heavily in U.S. Treasury bonds to keep [Renminbi cheaper] its export prices lower for it is largely dependent on the export-led growth.

Selling is warning to the USA about its support for Taiwan?

Or, is this a reflection of weakness in the Chinese economy? https://t.co/DNq2OyMh61

— Hrushikesh Swain (@RishiHks) September 4, 2023

Earlier this year, CNN Business relayed the concerns of China and Japan over the strength of the U.S. economy:

“Japan and China’s large Treasury holdings could hurt them if the value of Treasuries plummets,” said Josh Lipsky and Phillip Meng, analysts from the Atlantic Council’s GeoEconomics Center.

The falling value of Treasuries would lead to a drop in Japan and China’s foreign reserves.

That means they would have less money available to pay for essential imports, service their own foreign debts, or prop up their national currencies.

Nevertheless, the “real risk” comes from the global economic fallout and likely US recession that could follow from a default, they said.

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