⚠️ CHINA IS DUMPING THE DOLLAR AND THAT SHOULD TERRIFY MARKETS

This is no longer subtle.
And it’s definitely not “routine reserve management.”

China’s gold reserves just hit 74.1 million ounces a historic high.
At the same time, its U.S. Treasury holdings collapsed to $682.6B, the lowest in 18 years.

Since the 2013 peak, China has liquidated over $600B in Treasuries
while more than doubling its gold stockpile.

That is not diversification.
That is capital flight from the dollar system — at the sovereign level.

The implication is uncomfortable:

China is treating U.S. Treasuries as political risk, not “risk-free assets.”

And the macro logic is obvious:

U.S. debt is unpayable without currency debasement

Fiscal dominance has turned Treasuries into inflation collateral

Real yields are policy tools, not market prices

Sanctions proved reserves can be frozen, seized, or weaponized

Gold can’t be printed.
Gold can’t be sanctioned.
Gold can’t default.

Dumping Treasuries does real damage.

It drains global dollar liquidity, pushes stress to the long end of the curve, and forces the Fed to choose between market stability and currency credibility.

This is how reserve empires end:
Not with a crash — but with silent exits.

First, central banks move.
Then bond markets fracture.
Then currencies pay the price.

Anyone calling this “normal” either doesn’t understand macro — or doesn’t want to.

This isn’t China hedging.

This is China preparing for the moment Treasuries stop working.

And once that belief spreads,
the dollar system doesn’t bend — it breaks.