@sodden
so yes the empire is dying but the empire has a large army and spy agencies and an insatiable desire to be top dog and it will not go down without a fight.
I see why MAM beats the crap out of your advice; you may have to learn about economics.
Here we go:
The global economic landscape is shifting, with several major players re-evaluating their ties to the U.S. dollar and its associated assets. This reassessment is leading to a gradual separation and diversification of financial strategies.
China's Reduced Holdings of U.S. Treasuries:
China has significantly reduced its holdings of U.S. Treasury securities, reaching their lowest level since 2008. In October 2025, China's stockpile fell to $688.7 billion, a decrease from $700.5 billion in September. This trend of reducing U.S. Treasury holdings began during Donald Trump's first term and has continued due to concerns about U.S. debt sustainability and the Federal Reserve's independence. China is now the third-largest foreign holder of Treasuries, behind Japan and the United Kingdom. This reduction is part of China's broader strategy to diversify its international reserves and safeguard its assets.
Saudi Arabia's Diversification:
Saudi Arabia is increasingly using its oil revenues for domestic diversification rather than solely purchasing U.S. Treasuries. While Saudi Arabia has historically been a significant holder of U.S. Treasuries, with holdings around $143.9 billion as of September 2024, there's a growing trend of exploring non-dollar oil payments and strengthening ties with Asian economies. This shift is influenced by geopolitical factors and a reevaluation of the U.S. security guarantee.
Eurozone Actions and U.S. Dollar Exposure:
The European Central Bank (ECB) has warned Eurozone banks with significant dollar operations to strengthen their liquidity and capital positions due to potential U.S. currency volatility. While Eurozone banks hold substantial dollar-denominated securities, including U.S. Treasuries, they also engage in off-balance-sheet dollar liabilities through instruments like FX swaps. The ECB's foreign reserves also include U.S. dollars, managed alongside other currencies like the Japanese yen and Chinese renminbi. The overall foreign exchange reserves in the Euro Area have seen an increase, reaching $128.36 billion in February 2026.
Broader Trends in Central Bank Reserve Management:
Central banks globally are increasingly diversifying their reserves for risk management and resilience. This includes a growing interest in gold as a safe-haven asset, with central banks' gold reserves now exceeding their U.S. Treasury holdings for the first time in nearly three decades. Concerns about U.S. fiscal dynamics and political volatility are impacting the long-term outlook for the U.S. dollar. While alternatives to the dollar are limited, there's a noticeable trend towards diversification, with the euro and Chinese renminbi being considered, though their roles are still developing.
U.S. Treasury Bill Purchases:
Amidst these shifts, the Federal Reserve has announced plans to purchase Treasury bills to manage market liquidity and rebuild its reserves. These purchases, starting in December 2025, aim to ease money-market strains and ensure the Fed retains control over its interest rate targets.
These developments indicate a complex and evolving global financial environment where countries are strategically adjusting their reserve management and economic partnerships.
References:
China cuts US Treasury holdings to lowest level since 2008 amid debt ceiling fears
China reduces US Treasury holdings to lowest level since 2008 - Anadolu Ajansı
China trims US treasury holdings by $6.1 billion in November, reaching lowest since 2008: report - Global Times
China cuts Treasury holdings: A shift away from the U.S. dollar? - Tehran Times
The end of dollar dominance? - Hindustan Times
Central banks are diversifying reserves in uncertain times | Invesco Norway
Trends in central banks' foreign currency reserves and the case of the ECB
Powell Says Treasury Purchases May Remain Elevated for Few Months
Note:
Central banks worldwide cannot afford to let the US go broke; they have too much invested in America. If America fails, they go down also. Remember, 53% of worldwide trade uses the American dollar.