China’s US Treasury holdings dropped to an 18-year low while 30-year treasury yield crossed 5.1% after Moody’s downgraded US national debt.
  • NatakuNox@lemmy.world
    7·
    6 hours ago

    Yup. It’s not just China. Countries are slowly divesting from the United States and it’s only going to accelerate as time goes on. Once 51% of the world currency leaves the US the remaining 49% will disappear over night.

    • ☆ Yσɠƚԋσʂ ☆@lemmy.mlOP
      3·
      6 hours ago

      Exactly, it’s a self reinforcing process with more countries fleeing the currency as confidence collapses. And having a global reserve underpins the US fiscal policy, if the demand for the dollar drops dramatically then it’s almost certainly will lead to a domestic economic crash.