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Nations Massive Sell Off of US Bonds Signals Massive Further Decline in $Dollar // Kyle Kulinsky
Kyle Kulinsky | Trusted Newsmaker
Global Sell-Off of U.S. Treasuries Signals Deepening Crisis for the Dollar and American Influence
A wave of foreign financial retaliation is hitting the United States at the very moment Americans face historic inflation and collapsing purchasing power. Ground beef, chicken, coffee, and basic food staples are now priced at levels that would have been unthinkable only four years ago, and the economic pressure at home is being matched by a growing revolt abroad as nations begin dumping U.S. Treasury bonds at a speed not seen since the financial crisis.
The political consequences are immediate. Public approval of U.S. leadership has cratered as prices surge, unemployment rises, and financial markets wobble. But the longer-term danger is emerging from overseas: a coordinated shift away from American debt, driven by foreign governments and major institutional investors who no longer trust Washington’s leadership, fiscal stability, or geopolitical judgment.
Europe Signals a Break: “We’re Done Bankrolling the U.S.”
What began as irritation over aggressive U.S. foreign policy has escalated into the financial equivalent of a diplomatic slap. European officials are openly discussing the sale of U.S. assets in response to rising conflict with Washington. Analysts warn the move could accelerate a dollar decline that is already underway. European sentiment, once reliably aligned with U.S. interests, is shifting toward self-preservation as American threats and demands continue to mount.
One of the most symbolic moves came from Denmark, where a major pension fund announced it would liquidate all U.S. Treasuries by month’s end, citing rising credit risk under President Trump. The fund’s chief investment officer described U.S. finances as “no longer sustainable,” pointing to spiraling debt, a weakening dollar, and diplomatic provocations such as the push for Greenland. Whether the Greenland effort was symbolic or serious, European investors interpreted it as a sign of impulsive leadership.
China Accelerates Its Exit From U.S. Debt
China’s retreat from American debt holdings, years in the making, has now surged. Beijing sold more than $6 billion in Treasuries in November alone, bringing its total holdings to the lowest level since the 2008 crash. Since 2013, China has unloaded nearly half of its previous U.S. bond position — a staggering $634 billion.
What emerges is a picture of a global financial superpower actively unwinding its dependency on U.S. debt, shifting toward alternative currencies and hard assets. Evidence also suggests that Chinese purchases routed through Belgium — a long-suspected proxy — are becoming harder to track, raising concerns that off-book liquidation may be even larger than official data shows.
Market Shock: Over $1.3 Trillion Wiped Out in a Single Day
Economic consequences have been immediate. A staggering $1.3 trillion vanished from U.S. markets in one trading session, rattling investors and forcing emergency statements from the White House. Markets later stabilized after Trump publicly backed off the implied Greenland threat, but analysts warn the rebound is temporary. The deeper issue is trust — and trust is eroding rapidly.
Foreign governments and global investors no longer assume U.S. policy is rational, consistent, or stable. As political volatility increases, so does the incentive to diversify away from dollar-denominated assets. Canada’s recent push for expanded partnerships with China exemplifies the trend: allies hedging against American unpredictability.
Global Investors Prepare for a Post-Dollar Reality
Financial strategists, including major voices like Ray Dalio, are warning of a looming “capital war” against the United States as nations protect themselves from the fallout of America’s rising debt, shrinking credibility, and aggressive geopolitical posture. With the dollar already down more than 10 percent since Trump took office, investors are quietly pivoting to precious metals and alternative currencies as hedges against a possible long-term decline.
The implications are profound. For decades, the U.S. enjoyed unparalleled leverage because the world needed dollars, and the world bought American debt. That foundation is beginning to crack. When countries signal they are ready to move on, it’s not a temporary tantrum. It’s preparation.
Americans Feel the Pain First
As the global financial system shifts, everyday Americans are the first to pay the price. Food inflation has decimated household budgets. The majority of citizens report their income is no longer keeping pace with rising costs. The country’s debt-fueled economy, once sustained by foreign confidence, is now wobbling under its own weight.
The danger is not just recession — it’s a structural reset. If foreign countries continue dumping Treasuries while the dollar weakens, the United States will be forced into a painful economic correction that ordinary people will feel long before elites do.
The End of an Era May Already Be Underway
The global message is blunt: nations are no longer willing to absorb American debt, tolerate U.S. political volatility, or subsidize leadership they consider reckless. If the sell-off continues, the consequences will move beyond financial markets into the core of U.S. global power. For now, the world is voting with its money — and the vote is turning sharply against the United States.
The fallout is only beginning.
