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China dumps US debt! Hunt for gold instead of clutching the dollar!
China sells $21B of US bonds in early 2024; BRICS avoid dollar, promote de-dollarization with gold purchases.
China dumps US debt! Hunt for gold instead of clutching the dollar!
The world is shaking! China, a member of the BRICS alliance, has sold off US government bonds worth over $21 billion since the beginning of 2024! Never before in history has the Middle Kingdom sold so many US securities. In the first quarter of 2024 alone, an impressive $53.3 billion was sold. The figures for the third quarter are still out, but experts estimate that it could be up to $10 billion more!
But that's not all: other BRICS countries, which have been divesting themselves of US bonds since 2022, are also following suit. A clear message from emerging markets: end dependence on US assets! The dollar, plagued by de-dollarization and inflation, is losing its luster. More and more countries are looking at BRICS as a new alternative. A game changer on the global financial market?
Gold rush near China: The treasure is growing!
While China forgoes US bonds, it is busy collecting gold! Together with the BRICS alliance, China has been the largest buyer of gold for years. In 2023 they bought tons of this shiny metal for a whopping $550 billion! A clear indication that the new BRICS currency is backed by gold?
The rumor mill is churning: Will the dollar soon be replaced? The reaction from the USA is more than tense. With a debt mountain of over $35.6 trillion by 2024, concerns are growing among supporters of the US currency. China is increasingly using the yuan and exchanging its currencies directly with other countries. An economic policy that couldn't be more astute!
Strategic maneuvers before the election in the USA
But what is behind China's sales wave? According to Bloomberg Intelligence's Stephen Chiu, selling of U.S. securities could even increase, especially if the U.S.-China trade war flares up again. If Donald Trump is elected in November, things could get even worse! BRICS and China want to position themselves in good time and play their cards wisely before the election.
An epochal shift in the global financial system is imminent! Who would have thought that the rise of such an alliance could shake up the global power structure so much? Without question: the next few months will be exciting!