China is Dumping U.S. Treasuries and Buying Gold

by Mike Maharrey

As the Chinese accumulate more and more gold, they’re dumping U.S. Treasuries.

That raises an important question: who is going to keep funding the federal government’s borrowing spree?

China offloaded another $22.7 billion in U.S. Treasuries in February, according to the latest data from the Federal Reserve. That dropped its total holdings to $775 billion.

China still ranks as the second-largest foreign holder of U.S. debt, but the U.K. could soon overtake China and slide into the second position if the current trend continues.

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