China Threatens to Dump All U.S. Treasury Holdings if Tensions Erupt

Chart source, goldprice.org
Chart source, google charts

The Debt Bomb Grows

A major risk to the United States that has been bandied about within the precious metals market for years and more recently in the minds of broader investors is the amount of U.S. debt that foreign countries have accumulated over the past number of decades and the fact that it could one day be used as a weapon against the United States.

Chart source, The Balance

China Threatens to Unload U.S. Treasuries

Exemplifying this low point in relations, China has pointed out the fact that they hold so much in U.S. debt and the power that they now wield because of it.

In Conclusion: A Double Edged Sword

Although China is rattling their saber once again, I believe it is just that, as the ramifications for them dumping their entirety of U.S. Treasuries on the market would have dire consequences for them as well.

Chart source, statista.com

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Nathan McDonald

Nathan McDonald

Financial journalist with over 10 years of experience. Writing about geopolitics, economics and all things related to precious metals.