CHINA DUMPS $53 BILLION OF U.S BONDS

China, a major holder of US debt, announced selling a significant amount of US bonds (at least $53.3 billion).

This event will have economic repercussions and political implications, so what?

Claudio Grass (Swiss Economist):

Supports China's decision, citing strong performance of gold compared to US bonds.

Expresses concern about the politicization of the US dollar and asset seizures.

Believes Western political systems are unstable.

We will stop and talk about the implications and main issues behind this Chinese decision First

Potential Impacts:

The first thing will be its impact on the economic side

Could lead to higher interest rates for the US government as demand for US bonds decreases.

May weaken the US dollar compared to other currencies.

Could cause instability in global financial markets.

Political:

Signals a potential shift away from US dollar dominance in global trade.

May indicate a solidifying alliance between China and Russia.

Could lead to increased tensions between the US and these countries

Uncertainties:

The full extent of China's bond sales and their future plans remain unclear.

The long-term impact on the US and global economies is difficult to predict

Additional Considerations:

This is not the first time China has sold US bonds, but the scale and timing suggest a more deliberate strategy.

The health of the US economy and political stability will also influence the impact of these actions.

Can you tell? 

the USD has been used for decades already as a political weapon and with the arbitrary confiscation of assets due to pressure from the US government.”

Will the dollar's control end one day?