On July 18th the US Department of The Treasury revealed that the top foreign holders of U.S. Treasury bonds / debt are selling off their holdings at an alarming rate.
Japan, which is #1 holder reduced its U.S. Treasury bonds by $30.4 billion in May.
China reduced its holdings of U.S. Treasury bonds by $22.2 billion in May. This marks the second consecutive month of reduction and brings its total holdings close to the historical low of 801.5 billion dollars.
China has been steadily reducing its holdings since August of last year.
But here is the surprising news that everyone should start paying attention to.
In April at least 19 countries globally have sold off U.S. Treasury bonds leading to a reversal in the flow of funds invested in U.S. Securities.
We know about China and Japan.
- the UK
- Saudi Arabia
- The UAE
- And the Bahamas among others have sold off U.S. Treasury bonds to varying degrees.
The Cayman Islands and Bermuda have also engaged in U.S. bond sales amid the U.S. debt ceiling deadlock and our looming banking crisis.
Why this is interesting is The Caymans and Bermuda are two island states that so many companies and individuals have “offshore accounts. In fact, if you have ever been to the Caymans, all you see are bank offices everywhere. So even banking nations are fleeing US debt / T-bills.
Even strong allies like the UK which is the third largest holder of U.S. Treasury bonds sold off $14.1 billion in May marking the second consecutive month of US debt reduction, with a total sell off of $44.5 billion for April and May combined.
Australia also sold off U.S. Treasury bonds for the second consecutive month selling $6.5 billion in May representing a sell off rate of 11%.
Israel sold off $3.8 billion in April and May reducing its holdings from the peak of $69 billion in December 2021 to $43.5 billion. Israel has been in a continuous state of selling off US debt.
Saudi Arabia sold off $4.9 billion in May and Saudi Arabia’s holdings have declined from a peak of $184.4 billion two years ago to $111.3 billion with a cumulative net sell off of $73.1 billion a sell off rate of around 40%.
The UAE sold off $1.2 billion of U.S. Treasury bonds in May.
Iraq has been selling off U.S. Treasury bonds continuously since February, which is no surprise with a total of $8.5 billion representing a 21% sell off rate with only $32.7 billion U.S. debt held.
The Fed is Killing Our Currency
The Fed’s aggressive interest rate hikes have hit many countries around the world. These countries have been impacted big time by the U.S. dollar and the 10-year U.S. Treasury yield which has risen sharply.
Because of this, even our allies have seen the need to reduce their reliance on the U.S. dollar and U.S. Treasury bonds.
For a long time, the U.S. has utilized the reserve status of the U.S. dollar and the monetary policies of the Federal Reserve to its advantage in the global economy. However, this has also been the reason why many countries have lost interest in U.S. Treasury bonds.
As I have been warning you, now more and more countries are beginning to break free from their dependence on the U.S. dollar and U.S. Treasury bonds.
This has now become an ever-growing trend in the global currency arena.
Because of the Petro Dollar system, the U.S. has been using that financial leverage to impose restrictions on many oil producing countries using the Petro dollar as an economic weapon.
But now we are starting to see the oil producing countries no longer adhering to the dollar-based system…
AND… BRICS starts marching in.
Like it or not, our current administration and The Fed has dug our own grave.
Countries are no longer willing to play the Petro Dollar game and possibly face potential repercussions. The repercussion is that we are seeing an acerating de-dollarization effort taking place right before our eyes.
All these countries are also accelerating their increase in gold reserves to replace U.S. Treasury bonds so that they can divest themselves from our dollar hegemony.
Even ally countries such as France and Germany have increased their gold piles to exceed 65% of their foreign exchange reserves.
We are witnessing an increasing number of countries repatriating, or bringing their gold back home, so as to reduce their reliance on U.S. Treasury bonds and break free of the need to use dollars.
According to a report by The World Gold Council on July 14th, China imported 148 tons of gold in May which was 24 tons more than in April and 121 tons more than in May 2022.
This first quarter of this year China has imported 422 tons of gold with a total of 694 tons of gold which has been delivered from the U.S. and Europe to China in 2023 alone.
But it isn’t just China alone buying gold.
In the first five months of this year at least 121 countries have started to advance the de-dollarization, selling off U.S. Treasury bonds on a large scale and using that money to purchase gold as part of their alternative assets.
U.S. Treasury secretary Yellen has admitted that the global de-dollarization trend is accelerating, she also stated that “the dollar will not be replaced by other currencies in the short term.”
Did you get that part, “in the short term”?
That means that in the long term we are going to be kicked off the playing field, and who is going to be the replacement team?
BRICS and their BRICS Currency.
What We Are Doing in Our Home
Personally, we have been creating alternate avenues to maintain our normalcy and creating our own personal supply chains to remain intact. We know a storm is coming, and we have been shoring up our “ark” for the long term.
We have been doing this in several ways…
– We are investing in tangible assets that we will need while our dollar still has buying power. Things like garden tools, kitchen tools, building tools, and other things that we will need in day-to-day life.
Excalibur 2900ECB Electric Food Dehydrator – https://amzn.to/4554kTM
Nutri-Mill Harvest Stone Grain Mill – $345.00 – https://amzn.to/3Sz3ABg
FoodSaver $146.98 – https://amzn.to/3mcCi81
Fermentation Crock Jar 2 Liter $40.99 – https://amzn.to/3kqU0nj
Fermentation Crock 10 Liter $91.99 – https://amzn.to/3IUr28J
– We are looking at purchasing junk silver so that we can use that for barter and trade. Gold and silver prices are currently low, so now is an excellent time to hit up those mom-and-pop coin shops and stock up on junk silver.
– We are ripping up our backyard and growing a bigger garden than last year. We will also work on saving more seeds this year so that we can grow next year.
Thrive Live – https://www.thrivelife.com/mhor
Augason Farms – https://raymondmhor.com/shop/ – This is my personal page where I track Augason Farms super sales on Amazon. The prices are 50% – 70% off. The key is that the sales only last 24-36 hours, so you need to stay on top of them so that you can take advantage of these sales and pick up several cans at one time.
– We are working on connecting with local gardeners, farmers, ranchers, and farmer’s markets.
– We are leveraging apps like…
– nextdoor.com, where we can connect with other gardeners.
– publicsq.com, where we can connect with local family-owned businesses.
– preppernet.net, where we can connect with other preppers all over the U.S. and locally to help facilitate mutual assistance groups.
– We have also switched from buying 95% of our daily consumer goods from Walmart. We are now leveraging Patriot Switch, which has helped us replace all those goods we once got at Walmart and other box stores, and now we shop with a great family-owned online shopping club with nearly 500 daily consumer goods that are also US Made.
We Must Change Our Buying Habits Now
A few weeks ago China stopped all trade of gallium and germanium, two metals needed to produce microchips.
This from Zero Hedge…
Now this will continue to affect the microchip arena along with the lack of neon, palladium, and palladium.
I keep warning folks that we must make this switch now so that when SHTF, we are already prepared and used to this new way of getting what our families need.
Imagine if China said they would stop shipping things we use every day? What sort of chaos would that create?
Just look at gallium and germanium, the two metals needed to produce microchips.
That is the kind of leverage that BRICS / China has over us. They can pull the rug out, and we are crap out of luck.
Folks, think about this for a moment, what would happen if the Walmart shelves became empty, or the products there cost so much that you can’t afford them because they are imported?
Gallium and germanium are two metals needed in producing microchips.
We need to identify our personal supply chains to have them in place in case the rug gets pulled out from under us.
For us, the biggest issue was finding a company that still produces US-made consumer goods, and we found a good one.
The great news is that they maintain our family’s values. No ESG with them. No WOKE agenda and No Chinese-made Chinese sourced junk.
If this is something that you want to leverage for you and your family, contact me, and I will zap you an email and send you a text when you fill out my Patriot Switch link.
I promise no Amway speeches or anything like that. Just me sharing what we are doing and how we made the switch.
Talk to me and join 20,000 other patriotic Americans with the Patriot Switch Movement – a great online shopping club – https://patriotswitch.com/thekiltedprepper
What’s The Alternative?
You will be put in a SHTF situation where you and your family cannot maintain some normalcy, where you could have jumped on what we are doing here at the Mhor home.
The thing is that right now, we still have time. If you wait to make all these changes I recommended above, well, to be blunt, it will suck big time for you and your family.
So, I suggest that you start doing these things now. Put your pride aside and start looking for alternatives to create your own personal supply chain that will produce American-made products so that you can maintain some normalcy for you and your family.
Start learning to garden, hunt, and fish.
Start using the apps mentioned above to create alliances to barter and trade with.
Start securing your daily consumer goods and finding American-made products by making the switch – https://patriotswitch.com/thekiltedprepper
If you have any questions, please feel free to reach out to me.
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GRATUITOUS DISCLAIMER – Amazon, The FTC, and any other shopping website that you might see here on my website want me to remind you that this website does, in fact, contain affiliate links. That means if you buy something by clicking on a link., I might receive a small commission. This does not increase the price that you’ll pay for that item, nor does it decrease the value of the item. Keep Pushing Forward! – Raymond Mhor
NOTE – I am not a financial advisor. What I am giving is what we do and just an opinion. If you have financial issues and questions then ask your personal financial advisor.