Outside The Dollar

← Outside The Dollar25 sept · 15 min

High Rates, $1.4T Debt & China's Gold Buying

High Rates, $1.4T Debt & China's Gold Buying25 sept15 min

China's shrinking U.S. Treasury holdings alongside record gold imports signal a deliberate diversification away from dollar-denominated debt, not an abandonment of the dollar itself. This September 2026 episode examines how persistently high interest rates, a national debt interest bill near $1.4 trillion, and a shrinking foreign buyer base for Treasuries are converging into what one prominent bond strategist calls a market collision. The discussion traces China's Treasury holdings falling to an 18-year low while its gold purchases surpass 1,000 tons for the year, connecting these shifts to rising yields, mortgage rates, and household purchasing power. For anyone holding or considering gold, silver, or other precious metals, the episode outlines why reserve diversification trends matter. Findings referenced include data from the National Seniors Policy Center, IBTimes, and TradingView/Seeking Alpha.