China sold $50B of US bonds last quarter.
Officially, they buy $25B of gold per year.
At that rate, they’ll flip reserves by 2026.
They will hold more gold than Treasuries. t.co/lZ8D253KoL— Balaji (@balajis) June 2, 2024
Chinese state media is explicit about their goal: reduce dependence on US debt and acquire gold instead[1].
The math on anything like this is rough. Still, if this rate continues, they’re selling $200B/yr in bonds. That gets them from ~$770B to $170B in US bonds by end of 2026.… pic.twitter.com/fo48pjXmTk
— Balaji (@balajis) June 2, 2024
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