Скачать или смотреть Bessent Begs Investors to BUY USD Assets As US Sells Gold To China

The global financial landscape is undergoing a subtle but significant shift as foreign investors increasingly pull back from US assets. Treasury bond demand is softening, particularly from central banks and major holders, while the dollar drifts lower and foreign capital shows less enthusiasm for absorbing American debt. This is not mere short-term noise; the combination of weaker bond appetite and currency depreciation signals mounting underlying pressure on the dollar system.

Over the past year the dollar has fallen more than 10% on a trade-weighted basis, with recent two-month declines around 1.5%. For foreign investors this compounds losses: a 10% S&P gain becomes roughly 5% effective after currency translation. Despite remaining elevated relative to long-term averages, the dollar's weakness erodes confidence in returns, especially as US manufacturing sheds over 300,000 jobs since 2023 amid tariff-driven input cost increases of 30–40% that hurt export competitiveness and reduce natural dollar demand.

Fiscal strains amplify the challenge: the Congressional Budget Office projects a $1.9 trillion federal deficit this year, climbing to $3.1 trillion by 2036 (6.7% of GDP), with interest payments alone nearing 4.6% of GDP—meaning most new borrowing services existing debt rather than funds productive investment. Treasury Secretary Scott Bessent defends the dollar's fundamentals through regulatory certainty, structural reforms, and energy strength, but industrial contraction, export softness, and energy export declines (US oil down ~10%) limit the impact of such arguments.

In response, reserve diversification accelerates toward hard assets. China leads: Shanghai Gold Exchange inventories surged by 104 tons recently (separate from official buys), the People's Bank of China continues adding reserves, commercial banks accumulate, and estimates suggest actual purchases may be up to 10 times reported figures. The US exported $12.5 billion in physical gold in a single recent month, much flowing to hubs like London and Switzerland before reaching Chinese buyers—replacing traditional Treasury recycling with bullion accumulation. Chinese firms also expand upstream control, as seen in the $4 billion acquisition of Canadian miner Allied Gold for African rights.

This redirection carries no counterparty risk, bolsters reserve independence, and signals eroding faith in fiat systems amid sanctions and fiscal concerns. As bond supply grows while foreign demand wanes and gold flows rise, settlement patterns and global confidence face reevaluation. Will markets continue absorbing expanding US debt, or will reserve diversification and physical asset accumulation gain decisive momentum?



In this video:

00:00 – Bessent Begs Investors to BUY USD Assets As US Sells Gold To China
00:36 – Foreign Demand for Treasuries Is Slipping
02:56 – Dollar Weakness Amplifies Foreign Losses
05:40 – Bessent’s Defense of the Dollar
08:54 – The Deficit Spiral
11:10 – China’s Gold Strategy and Settlement Shift

#USA #China #Trump
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