China’s $2 Billion Bond Sale in Saudi Arabia: A Challenge to US Dollar Dominance?

China's recent $2 billion dollar-denominated bond sale in Saudi Arabia has quietly shaken the global financial landscape. Why would China issue bonds when it holds trillions in reserves? And why in Riyadh? In this episode of Global Insights, Professor Noah Zerbe explores the economic and geopolitical strategies behind this move. From Saudi Arabia's rise as a financial hub to the potential implications for US financial dominance, this video unpacks the story behind the headlines. Could this be the start of a multipolar financial system? Watch now to explore the intersections of global finance, politics, and power. Don’t forget to like, comment, and subscribe for more insights!

[@PhiloSurfer]

By Arnaud Bertrand: The story around China issuing USD-denominated sovereign bonds in Saudi Arabia is generating an enormous amount of buzz in China, and could potentially be immensely important. I strongly suspect it's a message to the upcoming Trump administration. Let me explain what seems to be going on. On the face of it, it's not a major story: China issued $2 billion in USD-denominated sovereign bonds in Saudi Arabia, which means that investors lent USD to the Chinese government that they promised to pay back. That's what a bond is. So far, relatively boring. The first somewhat interesting aspect of it is that the bonds were oversubscribed by almost 20x (meaning $40+ billion in demand for $2 billion worth of bonds), which is far more demand than usual for USD sovereign bonds. Typically US Treasury auctions see oversubscription rate between 2x to 3x so there obviously seems to be very strong market appeal for China's dollar-denominated debt. The second interesting aspect is that the interest rate on the bonds was remarkably close to US Treasury rates (just 1-3 basis points higher, i.e. 0.01-0.03%), which means that China is now able to borrow money - in US dollars (!) - at virtually the same rate as the US government itself. That's the case for no other country in the world. As a benchmark, countries with the highest credit ratings (AAA) typically pay at least 10-20 basis points over US Treasuries in the rare instances when they issue USD bonds. The third interesting aspect is the venue itself for this bond sale: Saudi Arabia. This is unusual since sovereign bonds are typically issued in major financial centers, not in Riyadh. The choice of Saudi Arabia and the fact that the Saudis agreed to this is particularly significant given its historical role in the global dollar system, the so-called 'petrodollar' system which I don't need to explain... By issuing dollar bonds in Saudi Arabia that compete directly with US Treasuries, and getting essentially the same interest rate, China is demonstrating it can operate as an alternative manager of dollar liquidity right in the heart of the petrodollar system. For Saudi Arabia, which holds hundreds of billions in dollar reserves, this creates a new option for investing their dollars: they can invest it with the Chinese government instead of the US government. Ok, that's all interesting but still not the main reason why Chinese social media is abuzz. The reason why is because they postulate that this is trial round by China to demonstrate to the US that they can effectively use their own currency against them, with potentially dramatic consequences. How? First of all, think it through, imagine if China scales this up and instead of issuing $2 billion worth of bonds, they start issuing 10s or 100s of billions worth of it. What this means for the US is that China would effectively be competing with the US Treasury in the global dollar market. Instead of countries like Saudi Arabia automatically recycling their dollars into US Treasury bonds, they could put them into Chinese dollar bonds that pay the same rate. This would create a parallel dollar system where China, not the US, controls part of the flow of dollars. The US would still print the dollars, but China would increasingly manage where they go. Imagine that... Another critical aspect is that every dollar that goes into Chinese bonds instead of US Treasuries is one less dollar helping to finance US government spending. At a time when the US is running massive deficits and needs to constantly sell Treasury bonds to fund itself, having China emerge as a competing dollar bond issuer that can match Treasury rates could pose immense financing problems for the US government. It could effectively end the US's so-called “exorbitant privilege”. But wait, you might ask yourself, what's the point of China having so many dollars? Don't they transfer the problem to themselves: they too need to find a place to invest all these dollars, don't they? You'd be right, the last thing China needs is more US dollars: in 2023 it ran a US dollar trade surplus of $823.2 billion, and for 2024, it's expected to be $940 billion. China is already absolutely awash with dollars. But that's where the beauty of the Belt & Road Initiative comes in. Out of the 193 countries in the world, 152 of these countries are part of the BRI. And a very common characteristic many of these countries have is: they owe debt in USD, to the US government or other Western lenders. This is where China's strategy could become truly clever. China could use its US dollars to help Belt & Road countries pay off their dollar debts to Western lenders. But here's the key: in exchange for helping these countries clear their dollar debts, China could arrange to be repaid in yuan, or in strategic resources, or through other bilateral arrangements. This would create a triple win for China: they get rid of their excess dollars, they help their partner countries escape dollar dependency, and they deepen these countries' economic integration with China instead of the US. For BRI countries, this is attractive because they can escape the trap of dollar-denominated debt (and the threat of US financial sanctions) and get likely better conditions with China, which will help their development. In effect this would China placing itself as an intermediary at the heart of the dollar system, where the dollars still eventually make their way back to the US - just through a path that builds Chinese rather than American influence and progressively undermines the US's ability to finance itself (with all the consequences this has on inflation, etc.). At this stage you probably tell yourself "come on, there's no way China can do that, the US government surely has tools at its disposal to prevent this stuff". And the answer, surprisingly, is that there is actually little the U.S. can do that doesn't undermine them in some shape or form. The most obvious response would be to threaten sanctions against countries - like Saudi Arabia - or institutions that buy Chinese dollar bonds. But this would further demonstrate that dollar assets aren't actually safe from US political interference, further encouraging countries to diversify, compounding the problem. The dollar's strength partly comes from network effects - everyone uses it because everyone else uses it - but as we've seen with Russia sanctions create a coordinating moment for countries to move away together, weakening these network effects. Another option would be for the Federal Reserve to raise interest rates to make US Treasuries more attractive. But this would be self-defeating: it would increase the US government's own borrowing costs at a time when they're already struggling with massive deficits, potentially triggering a recession. And China, getting similar rates as the US, could simply match any rate increase. The US could also go for the "nuclear option" of restricting China's ability to clear dollar transactions but this would effectively immediately fragment the global financial system, undermining the dollar's role as the global reserve currency - exactly what the US wants to avoid. And with China being the most important trading partner of the immense majority of the world's countries, nothing is less sure that the U.S. would win at this game... In short this seems to be like some sort of Tai Chi 'four ounces moving a thousand pounds' (四兩撥千斤) move by China, using minimal force to redirect the dollar's strength in a way that benefits China. Like I wrote at the beginning however, at this stage this is most likely just a message by China to the upcoming Trump administration: "we can do this so maybe think very carefully about all the nasty things you have in mind for us..." The beauty of this move is how strategically elegant it is: it costs China almost nothing to demonstrate, but forces Washington to contemplate some very uncomfortable possibilities.

[@JayJay-mw5ur]

A very smart move by China. Send a message to the US because as we all know the US is in denial with regard to the decline of its influence and dominance around the world. Also if BRICS and the rest of the world coordinates all of their tactics against the US they can hasten the demise of the US without the need for military conflict .

[@jakobbergen7574]

Thanks for your analysis. I rarely read such lengthy comments. Well said.

[@souria1671]

Merci 🙏 pour toutes ces informations intéressantes 👍👍

[@jimmychoi5219]

And the bonds are guaranteed with China's huge trade surplusses...

[@JoelVilleneuveAnaudin-yx5wv]

Thank you very very much for this Excellent and insightful geopolitical perspective… where you so elegantly avoid but we could read in between the lines, the following Chinese mantra-: Got you by the balls M. Yankee. !!! What is Chinese chess game (namely the Go) strategy.

[@Darkmatter321]

In other words China is using the Dollar to de-dollarize. Brilliant move !

[@oskadavid2964]

DITCH THE GENO SIDE DOLLAR

[@Raksasaification]

Not really. They simply offer an alternative way to use US dollars. This means USA now has less power to dictate how the dollars is used. It's detaching USD from the US, for better or worse. Anyhow such figures is nothing compared to bonds issued by the US

[@evergreenhills]

@@Raksasaification 中国人哲学，大音希声，大象无形，你慢慢体会

[@minh_le_...........1384]

@@Raksasaification you're basically spelling out dedollarization in your comment. Dedollarization = take away US leveraging USD as a power tool. And yeah, start small, grow exponentially, that's the essence of Self-Organized Criticality. US underestimated Russia militarily, and is now swallowing hard. Now it's underestimating China financially. Like all dying empire, denial and hubris reign supreme.

[@popocucu4829]

Yeap...thats the best strategy

[@elric8885]

Seems like a play derived from this famous quote: If you owe the bank $100, that's your problem. If you owe the bank $100 million, that's the bank's problem.

[@henrykasiita9470]

Of the many pathways to bring American Hegemony to its knees, this is a master stroke. It accomplishes so much in a single stroke.

[@TacticalMayo]

The fact that that's what you think will happen is hilarious 🤣

[@GreenIsland38]

Indeed

[@johnsmith1953x]

@@TacticalMayo The USA is done in 2-8 years. Seriously, GAME OVER for the USA.

[@emilioesdabes7086]

Nothing can STOP the Mighty US Dollar.. not even China. Nothing to see here.

[@rosemarie-w9h]

Fantastic video🔥🔥! I have incurred so much losses trading on my own....I trade well on demo but I think the real market is manipulated.... Can anyone help me out or at least tell me what I'm doing wrong??

[@stevenng-4]

Trading on a demo account can definitely feel similar to the real market, but there are some differences. It's important to remember that trading involves risks and it's normal to face looses sometimes. One piece of advice is to start small and gradually increase your investments as you gain more experience and confidence. It might also be helpful to seek guidance from experienced traders or do some research on different trading strategies.

[@rebeccahamilton-7]

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[@JayJay-mw5ur]

The US is in a downward spiral and the funny thing is most countries around the world including it’s allies are celebrating.

[@samwisegamgee289]

NAIL HAMMER AND HEAD ARE WORDS THAT COME TO MIND

[@Cat-bg2ge]

That's a lie.

[@afriyievictor]

The irony is that they taught trump was going to save them from that down spiral but he is only going to accelerate it

[@cheryldeboissiere1851]

Well, America 🇺🇸 has always been a country making threats, when not napalming or dropping white phosphorus in the air. Let me help you with this: when South Korea 🇰🇷 makes a threat, people laugh cause they have no ability to do whatever. America 🇺🇸 makes a threat, they can do so and what is worse they are so immoral, they probably will do so. And actually have struck and assaulted smaller nations. Trump thought he should be able to nuke small countries so definitely freaks who think like Nazis. This is why even allies despise them and are laughing. You must be young. They have a long list of crimes behind them. It is why they are quietly boycotted, why they can’t sell cars and etc. Ie They are criminals. Psst: The threats are a serious clue.

[@王班超]

讽刺的是中国也不想看到这个现状。中国对霸权文化没兴趣，是美国政府一步步紧逼。

[@yaoliang1580]

The over subscription shows other countries confidence in the Chinese government n economy

[@TacticalMayo]

The over subscription on a United States social media platform and then a person like you subscribing. That's not supposed to be here because you're from China and using a VPN illegally going through firewall that your country does not allow you to use this social media platform lol. Is that what you're talking about?🤣

[@yaoliang1580]

@TacticalMayo you missed the whole picture my dear

[@TacticalMayo]

@@yaoliang1580 no not necessary because as an American I'm going to tell you this so you understand how the picture is cuz we will make sure that this is how the picture is. The United States will stay the hegemonic global dominant power or.

[@TacticalMayo]

@@yaoliang1580 ARMAGEDDON

[@扶光-l8r]

中国人口14亿多的，每年有很多人在国外留学工作，中国是外贸大国，还有很多人拥有与外界沟通的能力 我们主要是每个月需要支付一定的服务费，很多人也不愿意支付这个费用，有的人其实也并不感兴趣 还可以合理的去办理，但是费用更高China has a population of more than 1.4 billion, and many people study and work abroad every year. China is a big foreign trade country, and many people have the ability to communicate with the outside world. We mainly need to pay a certain service fee every month, and many people are not willing to pay this fee. Some people are not interested in it, and they can handle it reasonably, but the cost is higher.

[@thinkingaloud5379]

The US has never encountered such a wise and powerful adversary like China before....

[@oskadavid2964]

DITCH THE GENO SIDE DOLLAR

[@jasonbussenschutt8262]

Of course it has but we're in 2025 n Americans are still thinking about themselves and China is seeking friends with the rest of the world.

[@souria1671]

Ils étaient le mettre de monde, ils étaient occupés à faire des guerres maintenant il y a une nouvelle puissance économique 💪💪👏👏 à la Chine 🇨🇳

[@stephenlock7236]

That's because the rogue US refused to accept that China is not just a more populous USA but a very benign country

[@badbad-cat]

I think this high level competition will be good for technological advancements and good for humans if this doesn't end up in war

[@Robert29011]

I’m favoured financially with Bitcoin ETFs,Thank you buddy.$63,700 biweekly profit regardless of how bad it gets on the economy

[@maryjeff282]

How please!? If it’s possible, I would appreciate if you show me how to go about it

[@Robert29011]

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[@crystalsword16]

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[@crystalsword16]

HIS AVAILABILITY IS SURE ON WHAT'S APK

[@rashidbagewadi1006]

End of dollar means end of America. Bye bye. Ta ta America.

[@chriswong9158]

Not really, like the British Sterling, it's still there, but no long value worldwide for trading.

[@urimtefiki226]

@@chriswong9158 I have never seen a Sterling in my life and I am 51 years old and I live in Europe. Imagine that money so unimportant that even I have not seen it.

[@joshJ.]

Plus it now has king 🤴 Charles face instead of the old queen 👸

[@TacticalMayo]

Oh you mean for the world? What you think? We will just sit there and accept? No you's got to be ready for what comes with it and you know how we are 🫠🇺🇸

[@rashidbagewadi1006]

Homeless hungry and sick people dying on roads as inhumans. Today America's debt crossed 36 trillion dollars. As moody's. Lena's petrova. Told America will be bankrupt. Then how many millions are in lines to come. God knows.

[@raymondlee2317]

A Journey of Thousands Miles Must begin with A Single Step .. Period!

[@ishratjahan4173]

Very true, it seems the first few steps are already been taken.

[@TacticalMayo]

We 🇺🇸 don't care.

[@joemartin6202]

Master stroke of genius, it reduces the market for the US to print money like toilet paper and sell it overseas and these bonds create a safe haven for the Global South😍🥰🥰

[@TacticalMayo]

Wow! The fact that you believe it is crazy 🤣

[@Trevor3777]

​@@TacticalMayothe US federal reserve prints approximately 30% of the US deficit every year.

[@Breno765]

​@@TacticalMayothe fact that you don't believe makes you stupid or dishonest, but let's wait and see.

[@edenchenyl]

Good analysis. Thanks.

[@ahabderrahim5730]

Every country is moving to reduce its portfolio of USD or bonds, reflecting worldwide worries. That's when u use your banking system as political weapon.

[@TacticalMayo]

Well instead of political it's going to be nuclear then.

[@ahabderrahim5730]

@TacticalMayo it will be a suicide

[@bionicsix101]

Got a like and a subscription. I’m glad someone with your background is opining on developments. To many “geopolitics” channels are just repeating tropes.

[@LibraryChoice]

Subscribed ❤

[@yeshua_base64]

China is the most open and trustworthy country in the world. ❤

[@benboelens9688]

Not!

[@mikegr4587]

😂😂😂

[@mejjarsagent227]

Yeah

[@kingdang855]

Great content

[@888YangJi]

very insightful analysis.👍

[@Susan-z1k7t]

If you are not in the financial market right now, you are making a huge mistake. I understand that it could be due to ignorance, but if you want to make your money work for you...prevent inflation

[@BernieRicker]

Same here, I believe the Bitcoin ETFs will be life changing opportunity with my current portfolio of 132k made from my investments with my personal financial advisor I totally agree with you

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[@pjcollins-f1u]

She's always active on whats~appp..

[@pjcollins-f1u]

+136

[@jakobbergen7574]

Clear and simple explanation of a complex topic. Thank you professor.

[@ryanbanine9287]

Nice video. Thank you.

[@lindatodd4411]

The dollar will definitely be de-stabled, at least for the mean time, and by doing so we'll see a weakening in dollar transactions. which will help raise the use of tokens like Bitcoin, just like Putin talked about recently. I used to be skeptical about BTC, not until my Fee Only Advisor, showed me the way, and helped me manage my portfolio, which is tremendous, now I have steady dividend income weekly depending on trade and its all Tax free.🌹✅

[@rubywebster552]

LUCKY YOU!

[@lindatodd4411]

It was a well thought out strategy to me, I do not like to keep cash, in the bank or physical, because of inflation. Bitcoin and Gold are my go to, I don't have faith in the dollar like I did in 2015.

[@john00123]

Thank you for sharing your experience. do you mind sharing your How to find your Fee Only Advisor?

[@lindatodd4411]

sincerely speaking I work with Essmildaa Morgan, and will continue to stick to her guides for as long as it keeps working.

[@anthonypayne8106]

Wow, I know Essmildaa too! She’s helped grow my reserve, despite inflation, from £100k to £240k as of today

[@khairimat-ls9gq]

while China is counting on economic profit strategy American keep on printing more $US mounting their multi trillion debt

[@chriswong9158]

One should remember what brought down the Rome, Dutch, Spain, Brit... now USA. "Debt"

[@Cat-bg2ge]

I wish U.S. would print enough money to pay off the 34 trillion.😂

[@Cat-bg2ge]

I mean, why not. Think of all that interest we'd save. 60 trillion every 2 month's, interest only.

[@Cat-bg2ge]

OR the U.S. should declare bankruptcy.

[@shawnhe6180]

你觉得中国拿到了美国印的废纸就吃了很大的亏吗？不，他们急不可耐的就去别的国家换回了资源和产品。美元只是一个凭证，现阶段能换东西，再过十年再看看😊

[@YAS-dn6xn]

This is brilliant. Go China!

[@sohelgayen7636]

They are buying gold to Launch a Gold backed Yyan more powerful than Dollar

[@yuugenr7549]

They are buying gold nonstop plus they have the largest gold mine

[@TacticalMayo]

It will not be powerful. You are acting like the US will allow it. Do you remember what happened with Japan and Germany 100 years ago? You're going to get that again because of all this but on a scale way worse than now because there's wmds. So good job you reap what you sow by reaching for the crown. That thing in Ukraine. That's going to go all the way that. Thing in Taiwan that's going to happen, that thing in Israel that's going to go global. So enjoy!

[@joneslo5572]

It's always smart to have your economy backed by gold rather than worthless nothing backed US treasury bond. Let's see who is the last one holding this balloon when it burst !

[@johndmullin]

Hello from Ocala, FL.. I watched your video on the TV and had to switch to the laptop to make a comment. I am 81 years old and have been following China for almost two years. I did not know that another country could sell bonds and get paid in US dollars. How many years until maturity on these bonds? I wonder how this is going to play into the BRICS group? Does this kind of sale take dollars out of circulation? How will this affect the new administration and their tariff plans? Thank you

[@TaheriFinance]

Such as channel is underrated

[@lionvictor9944]

Development is dynamic. Bet China has big picture in mind in long term

[@TacticalMayo]

There won't be enough time for long term. We 🇺🇸 will make sure of that.

[@iainsearles6299]

​@@TacticalMayo In your dreams, maybe?😂😂😂😂😂😂

[@Hystericall]

If countries parked their dollars in US treasuries or Eurodollar bonds, they run the risk of what happened to Russia's money (outright theft by the US or EU); as you say, this creates an alternative market that is free of those risks. Recall that Saudi Arabia is still selling the bulk of its oil in dollars and have many dollars to dispose of, so this also serve a huge demand while removing US dollar weaponization risks.

[@aaronl7045]

Saudi Arabia are not using USD any more the use their own currency, and China Currency instead of USD.

[@Keepskatin]

Evil racist America is Babylomnand Rome and like their ancestors America is falling🙏🏾

[@jmg8246]

This ripple effect gonna hurt our kid's kids...

[@Cat-bg2ge]

Russians are hardly babe's in the wood who can be fooled by anyone.

[@elliekwong3180]

@@jmg8246 There won't be any future for the next and next generations. Americans will climb over the wall, trying to get to Mexico.

[@pirateofpacific]

It is USD denominated bond, so it does not reduce dependency on dollar. On the contrary it increases value of dollar.

[@johnaustin6853]

No, it doesn't increase the value of the dollar, but it does maintain its utility as the reserve currency. (The value of the dollar meanwhile depends on the USA's tendency to inflate its value away, by printing.) This move by China and KSA simply avoids having to replace the dollar with something else as the reserve currency, which might take a long time to develop traction. China can use its earned-not-printed dollars to back trade, undermining the US ability to continue its exorbitant privilege of providing printed dollars. A masterstroke - China can also issue dollar bonds anytime it likes, backed by its reserves of dollars, to undermine the US Treasury bond auctions and starve the US Government of funds tactically. 70% of US Bonds are sold domestically; but 30% are sold to foreigners who might be scared of sanctions under a Trump government. Remember, Trump has threatened tariffs against allies, as well as everyone else...

[@chriswong9158]

Can't say, China nor BRICS is off the US Dollar in trade. It's just use in another way in trade.

[@ks438]

Great listening

[@AmroShadi-l2f]

Add to your point the fact that Internal BRICS trading of commodities was conducted outside the traditional financial transaction system - think Bank of international settlements -and the Chicago board of trade

[@beegonee]

Doomed already..

[@chriswong9158]

Lets us not forget off of SWIFT service fee(s). BRICS system is offering local currency use and no handling/services fee(s) in the transaction... That's Billions $$$ save.

[@chriswong9158]

Also noted, BIS got off the "mBridge" in Nov 2024, now USA can't track those transaction that go thru mBridge outside of BIS, CBT, IMF, WB or local banking in future.

[@FAFOrednickinsell]

@@chriswong9158 I believe the USD Bond issuance was just a warning shot This is where China/BRICS will go after the USA/West 👇 The China - Russia “Grain Entente” - what is at stake for Canada and its allies?: Sergey Sukhankin for Inside Policy Moscow - with China’s help, approval, and likely, guidance - intends to challenge the West by changing the rules of trade in foods critical to global buyers. May 21, 2024 Forced to evolve its strategy, Russia seems to be abandoning its plan of threatening to starve its adversaries. Instead, Moscow - with China’s help, approval, and likely, guidance - intends to challenge the West by changing the rules of trade in foods critical to global buyers. This strategy is being implemented via pursuit of two interrelated initiatives: formation of a “Grain Entente” between Beijing and Moscow, and the use of the BRICS trading bloc (consisting of nine nations led by founding countries Brazil, Russia, India, China, and South Africa) as a critical vehicle of change. The first major step in this direction was made in October 2023, when the Russian Food Export Trade LLC company and China Chengtong International Limited concluded the “grain deal of the century” - the largest contract of this type ever signed between the two countries - according to which the Russian side pledges to deliver 70 million tons of various types of grain (produced in the Urals, Siberia, and the Far East) over the next twelve years for US$26.5 billion. As a result, already in the first quarter of 2024, Russia broke a historical record by supplying China with large volumes of oats (.7 times more than the previous year) and buckwheat (3.3 more than the previous year) receiving a staggering US$127 million. Yet, mounting grain sales is only the tip of the iceberg. The most critical development is China’s gradual overtaking of Russia’s logistical infrastructure, which could pave the way for China’s growing control over Eurasian logistics and trade routes. In September 2023, officials from Russia and China met at the 8th Eastern Economic Summit in Vladivostok, where officials from both sides agreed to create a logistical hub - the “GrainTerminal Nizhneleninskoye-Tongjiang” in the Jewish Autonomous Oblast. The goal is to create the Russia’s first “land-based grain fleet.” Consisting of 22,000 containers transporting grain, it will be capable of moving up to 600,000 tons of grain with a maximum storage capacity of up to 8 million per year. The strategic significance of this move is clear. On one hand, it allows Russia to “safeguard” itself against sanctions pressure, which will likely make Russia’s behaviour in Europe (and elsewhere) even more aggressive and unpredictable. On the other hand, China - which will acquire de facto control over Russia’s grain - will see Beijing become the world’s largest grain hub, giving it enormous power to influence and set global food prices. Russia’s next major move was to push for the creation of a BRICS grain exchange. Fully supported by Russian President Vladimir Putin, the proposed grain exchange would bring together some of the world’s biggest grain buyers and exporters, cumulatively accounting for more than 42 percent of global grain production (at nearly 1.2 million ) and 40 percent of global consumption. International observers and subject experts have already warned that Russia- and China- adverse exporters of grain and agricultural products such as the United States, Canada, and Australia “might face challenges in maintaining their market share and negotiating for favourable trade terms, while facing competition from cheaper Russian .” In effect, this may have “significant implications for global agricultural dynamics, ranging from geopolitical and geoeconomic realignments to increased competition in agricultural trade. For traditional exporters such as Australia and the US, it is a call to reassess their national policies and strategies to navigate the evolving landscape of international trade to maintain competitiveness.” - If the Russia-China grain alliance proliferates and BRICS becomes a major player in the global flow of grains and other foodstuffs, it could prompt even greater changes to the established world market. Analysis of Russian-language sources and publications indicates that the next step would be the creation of an alternative to the “West-dominated” financial architecture, and ultimately, the transformation of global trade. Russia’s plans (undoubtedly supported by China) pose a very serious challenge to Canada, its allies, and other liberal democracies. They will likely suffer economic losses of grain exports due to the cheapness of Russian grain, and that country’s current occupation of a large part of Ukraine’s most fertile black-earth areas. If unchecked, Russia could assume control of more than 30 percent of global grain supplies. Currently, the Indo-Pacific region is Canada’s largest export destination, with agriculture and food exports totaling $9.4 billion in 2022. If China gains unfettered access to Russian grain, it could seriously undercut Canada’s trade. Making matters worse for Canada, its relationship with New Delhi is arguably at an all-time low, making it challenging to pivot sales of its agricultural products toward India or other countries without significant economic losses. MLI

[@FunnyBunny-pd5xx]

​@@chriswong9158 According to President Putin, $10 billion of non earned income for The US.

[@AverageGuy916]

Dang... the statement "China makes everything really everything including USD" 😂😂

[@TacticalMayo]

That's a lie

[@quetzal4042]

3:00 10-20 basis points is 0.1-0.2%, not 1-2%, no?

[@Andreavince-v]

More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.

[@elliekwong3180]

Go to South America.

[@TacticalMayo]

You think that's a problem? Worry about the whole planet Earth after you see how the US react once it's global orders taken and once it's no longer the largest economy in the world. Because when that happens, trust me homes and all this other stuff will not matter to anything and anyone.

[@silversurfergw]

Who would have thought.. The new currency to challenge the dollar is the Chinese dollar 😅

[@Cat-bg2ge]

Ignoring it won't make it go away.

[@TacticalMayo]

Armageddon

[@KamranKhan-zg8ll]

More videos like these, professor!

[@TacticalMayo]

Reporting this treasonous garbage.

[@JamesBlume-u4i]

But bonds are like ✅ checks, that can bounce!

[@AnsImran]

Kindly put references whenever you say something. Simply show the lictures of the article from which you got the numbers/figures.

[@AnsImran]

If you put all the links in the description, it would be even better.

[@bhubestakesoponsatien1143]

This latest China bond sell, they ask for USD for good use, the USD will go on for until Debt to US is to a minimum

[@alana994aj6]

Make sense to have alternative to US dollar with regards to trade tariffs, direct foreign trade bypassing US dollar.

[@mikestewart4752]

The Chinese ”government” is out of money. 😂

[@benwlee]

Isn’t that a possible venue for a future squeeze? On second thought, squeeze is just one possible move.

[@hyuxion]

When an empire collapsed, its currency might still be around for a long time. Like the Roman Empire and Han Dynasty two thousand years ago.

[@TacticalMayo]

Number one no one's taking the number one spot of the United States number two Rome did not have WMDS

[@daneal7874]

It was't the currency of Roman that remained! It was the golden coins!! Now, if USA collapses, its papers called dollars won't survive!! So, it is not the "empire" it is the real value of the currency!!!

[@tat3179]

@@TacticalMayoFunny. The Soviets have nukes they still collapsed.😂

[@TacticalMayo]

@tat3179 The difference is Gorbachev came into office and things changed. but we are not going to do that and we are going to use them.

[@tat3179]

@@TacticalMayo If you say so. Facts dictate otherwise. China is expanding to the rest of the world, America contracting. US wants to bring in their companies into American shores and shut the door to everyone with sky high tariffs. China just opened their wide to 33 poorest countries tarriff free access into their market.

[@sushmajoshi8666]

But why are they doing it in the dollar? Is that even allowed--its the currency of another country? I assume the US said: "Go ahead, use the dollar." Which may be a circuitious American way to stem the flood of dedollarization globally.

[@captnjaygreybeard6394]

Very interesting developments

[@josefernandocarli6372]

On a side note, this is a fantastic solution for the Saudis, in fact, I see this as being more advantageous to the Saudis than to the Chinese: a) They still sell their oil in USD, so the US cannot complain; b) They keep their FX reserves in USD denominated assets, which is STILL the most used trade currency; c) Those assets yield essentially the same that US treasuries, in fact a miniscule higher yield; and last by but by far not the least: d) THERE IS ABSOLUTELY NO WAY THE US CAN CONFISCATE THOSE ASSETS. They are theft proof, since they are owed by China to the bond holders. I would not be surprized if the Chinese could get away with paying LESS for those bonds than the US pays for its own treasury bills. THERE IS NOTHING, I repeat, NOTHING THE US CAN DO to confiscate those assets. That possible discount in interest yield would be an insurance premium countries would be willing to pay for the protection agains US theft. Absolutely brilliant from a Saudi point of view. I am still not totally sure what the Chinese could do with all those pieces of green paper, since above all, they should first think of how to get rid of all those USDs they themselves own. Summarizing: For the Saudis, or any other country that wants to still keep FX reserves in USDs, absolutely fantastic idea. I am just not so sure that I can see much advantage for the Chinese.

[@tat3179]

How they invest in the green paper? Build more ports, buy more mines. They can already outbid the US in this area. Reinforce Chinese supply chains. Buy gold. Stockpile natural resources and food to prepare for war.

[@null-r2f]

For Saudi Arabia, this is the perfect solution to deal with their $100 billion annual trade surplus. For China, it could give them an edge in the US-China competition. An example, Argentina owes money to the U.S., but they can't pay it back on time, and then the U.S. will demand that Argentina pay it back with their core assets and some political strings attached. But the bonds issued by China could provide another option for Argentina, where Argentina could buy Chinese bonds to pay back the money owed to the U.S., and China would only ask them to pay it back with the agricultural products and minerals that they produce, which is obviously a better option for them. In doing so China stops the US from harvesting assets from Argentina and disposes of their useless green paper at the same time.

[@douginorlando6260]

The two consequences I see are using the dollar denominated bonds issued in Saudi Arabia as collateral/escrow for oil transactions that bypass SWIFT meddling, and creating a safe place for China’s trade partners to invest their capital reserves instead of western banks where it gets confiscated (Russia and Afghanistan and Argentina and Venezuela are examples)

[@fannyalbi9040]

Simple words, stop us spending future money

[@Patrick-yh5yd]

Trump again our best hope,

[@geoms6263]

it´s ok spending future fiat money. In the future there would not be any fiat sistem but a base gold-bitcoin sistem

[@Patrick-yh5yd]

@@geoms6263 Like El Salvadore has? They love Bitcoin and is in bad financial trouble.

[@lavalwong]

One word - Checkmate

[@Cat-bg2ge]

😂

[@Cat-bg2ge]

It all depend's on who has biggest ball's.

[@TacticalMayo]

One word- wumao 🤣

[@TacticalMayo]

​@@Cat-bg2geit's the US 🇺🇸🇺🇸🇺🇸

[@puskarpokhrel5576]

It is the sign of depriceation of power of USA

[@Sufi-d3u]

Don't worry, it's a Trade Part.

[@aroma5910]

Thank you . I learnt something

[@Paul-e9x4h]

Memang bentuk investasi bisa bermacam macam

[@thabom9791]

brilliant!

[@ditshegomosienyane7252]

Hail the Arab-Dollar bond market! This is a warning to the established financial centers of London, Frankfurt and other far eastern financial centers. Well done, I think you adequately covered all the salient features of the issuance, however, I did not hear what maturity these bonds were. It is fascinating that you reported the coupon rate at more or less at par with US issued bonds, presumably of the same maturities. The yield on the bonds, however, might paint a different picture particularly if they were not issued at par.

[@fifi.mql5965]

The bonds were issued in two tranches: $1.25 billion maturing in 2027 with a 4.284 percent annual interest rate; and $750 million maturing in 2029 with a 4.34 percent rate. These rates were just 1 to 3 basis points (0.01 percent to 0.03 percent) higher than U.S. Treasury, the safest and most trusted government debt. By contrast, even AAA-rated countries like Switzerland typically pay 10 to 20 basis points above U.S. Treasury rates.

[@vanessali1365]

Scam alert: you might not get your money back... 😮

[@ditshegomosienyane7252]

@ not quite! The fact that the credit rating of the bonds was almost the same as the US government rating and the issuance was oversubscribed 20 times suggest that the market is happy about the counter-party risk, I.e. that of China which the narrator suggests is sitting on some $3 trillion in forex reserves, probably the highest in the world. Compare that to the US whose forex reserves can only be measured in terms of the confidence on the dollar by the rest of the world and can evaporate to nothing at any time.

[@vanessali1365]

@ don't say you weren't warned 😂

[@wahlumng5192]

Good forecast 😀

[@TacticalMayo]

Completely horrible forecast.

[@Peter-jl3qk]

No one likes a bully, most people root for the underdogs, go BRICS

[@MYTHOMINHTRAN]

'Sell it all, today'. Margin call, Board meeting.

[@laskartrece]

It will! Fiat money without oil... plus BRICS gold standard.

[@pauldandurandboots]

I don’t understand what all the fuss is with China selling US treasury bonds in Saudi Arabia. If China sells a $2 billion worth of bonds to others (i.e., Saudi Arabia), It’s just exchanging ownership from one to the other. The total amount of outstanding bonds in the market doesn’t change. China is not "issuing" US treasury bonds. Issuing means creating and only the US government can issue bonds. China is just selling them on the open market to those who want to buy bonds. If China sells $200 billion instead of just $2 billion in Saudi Arabia, the total US treasury bonds in the global market doesn't change. No threat to the US market that I can see unless I'm missing something. Anyone?

[@josdesouza]

Overreacting you're certainly not. Just explaining the facts in a clear and concise way.

[@TacticalMayo]

Would you see how our leadership overreacts ☢️☢️

[@picandvideo]

Within a decade China foreign reserves will grow to 5 trillions. However; by then only 1 trillion will be in $USD.

[@chriswong9158]

Need some correction, China foreign reserves as of 2024 is already 4.2 Trillions, of that 784 Billions are in US Dollar. China, like Japan and many more US Allies had been drawing down their US Dollar reserves bit by bit since 2023. China by 2030 less then 210 Billions of US Dollar reserve. Reason, All major (energy, food, raw material) trade need not USD$$

[@picandvideo]

@ Wow! I better go get more gold before $5000/oz.

[@MarcoTham-x9q]

To a basic businessman why do you want to hold any worthless paper from a bankrupt loan shark like uncle sam? 😮 Surely go to a good reliable moneylender with good interests lol😂

[@FAFOrednickinsell]

@@chriswong9158 From what I understand China has a huge amount of hidden currency reserves Although the 3 trillion they are talking about below most of it probably isn’t in USD 👇 China is hiding $3 trillion of foreign currency in 'shadow reserves,' adding unknown risks to the global economy, former Treasury official says Filip De Mott Jun 30, 2023 Half of China's currency reserves are "hidden," a situation that may add risks to the global economy down the road, former Treasury Department official Brad Setser wrote. While the country's State Administration of Foreign Exchange reported $3.12 trillion in foreign assets last December, Setser estimates that foreign exchange reserves actually sit at around $6 trillion. "China is so big that how it manages its economy and currency matters enormously to the world," he wrote in The China Project. "Yet over time the way it manages its currency and its foreign exchange reserves has become much less transparent - creating new kinds of risks for the global economy." A key indicator about China's reserves is a sudden pause in its reported activity. From 2002 to 2012, China's foreign exchange reserves steadily rose as the central bank bought US dollar assets to prevent China's yuan from appreciating too much, allowing exports to remain cheap. But over the last 10 years, China's reserves stopped rising, which is puzzling as China's trade surplus has continued growing, and currently stands at an all-time high, he said. BI

[@FAFOrednickinsell]

China will have a 1 trillion dollar trade surplus with the world for 2024 Some of that no doubt will be in USD

[@2phyxius]

I don't understand economic and I regret that I didn't take the study when I was young. So, I don't know whether your assessment is correct or not. But given your fluidity in speaking out, I tend to believe that it's true and hopeful that it will because we really need that multipolar world. Current unipolar world led by the West spearheaded by US obviously brings only injustice. One might argue that they promote democracy, liberalism and so on, but who really needs that to be implemented on all around the world as world is a diverse place with different background, culture and history? Also, it looks that when they try to impose it, it just a pipe dream and most countries were only became their cash cows. It gets even weirder to see how the West is okay with the genocide taking place in Gaza. Totally unjust, so yeah let the Multipolar world come!

[@theanysim]

How about international transaction in USD? They all have to go through SWIFT which is under US control.

[@patrickgz]

Countries outside usa offering usd denominated bond sales is not a new phenomena. Japan does same through its Shogun bonds where non-Japanese entities issue usd denominated bonds in japan, and with almost same rates as us treasury. other financial hubs like London, Singapore does too but at much smaller scale now. probably what caught the attention is Riyadh's move into this 'financial hub' space supported by China.

[@Keepskatin]

@Patrick Cope😂

[@elliekwong3180]

I think UAE is doing the same. Maybe they are selling USD instead of bonds.

[@netgiant2592]

Japan's USD bonds are typically issued at 5-20 basis points higher than US treasuries whereas interests on these new Chinese issued USD bonds were only 1-3 basis points higher (0.01-0.03%) allowing them to borrow at virtually the same rate as the US govt. Also current demand for Chinese issued USD bonds is far higher than those from these other countries you mentioned due to China's extensive trade relations throughout the world and especially in global south nations which are heavy in debt to western institutions.

[@Yoo-l6y]

Africa owes approximately $200 billion US to IMF and World Bank, Africa countries must buy $US to repay loans, if China sells $200 billion US to these Africa countries from its own treasury, this would knee cap the fed reserve ability to print fiat currency that would force Africa to underwrite US inflation from over supply of its own currency.

[@Keepskatin]

Africa owes you people nothing. You owe Afrika Reparations and black Americans and are owed Reparations...Babylon is falling🙏🏾

[@EhsanBoo]

It's time to stop useing USA dollars imidiatly

[@minidish]

About time. May the rest of the world not be threatened by uncle Sam and his whip. Apreatiate this report.

[@TacticalMayo]

Yeah keep telling yourself that 🤣

[@minidish]

@TacticalMayo think otherwise. Your fall

[@TacticalMayo]

@@minidish ARMAGEDDON

[@TacticalMayo]

@@minidish it's worth it to us.

[@elliottnamaha159]

Waow glad I've picked up this video. Thanks for the insight and crystal clear explanations. It is a smart move, using US own weaponized currency against them. No need for a BRICS currency. The first fight is on the US own territory, $... Do you have an idea what is the aggregate BRICS USD reserve? (Kudos from Europe).

[@TacticalMayo]

Lol another tanky

[@Jp-bowser5]

Thank you Lord Jesus for the gift of life and blessings to me and my family $14,120.47 weekly profit Our lord Jesus have lifted up my Life!!! 🙏❤️

[@alejandrocastelan27]

I'm 37 and have been looking for ways to be successful, please how??

[@Jp-bowser5]

Sure, the investment-advisor that guides me is..

[@Jp-bowser5]

Mary Elizabeth

[@Sanchez-z4k]

Her services is the best, I got a brand new Lambo last week and paid off my mortgage loan thanks to her wonderful services!

[@Jepsen5w]

😱Sounds familiar, I have heard her name on several occasions.. and both her success stories in the wall Street journal!

[@mirzaeyahia1673]

Well explained. Thanks

[@NavidKhan84]

Chad move no doubt

[@marlotree6909]

Brilliant move China B&R to hugely benefit!

[@LuisCarrillo-di6gv]

game over for the US dollar

[@TacticalMayo]

I don't think you know how this works

[@douginorlando6260]

China issuing dollar denominated bonds means China is buying/borrowing dollars with the same rate of return as the U.S. treasury bonds. Why does China need more dollars(they are dumping $100 billion every year)? Is it a way to bypass SWIFT using these bonds as dollar denominated escrow? Is it a way for investors to invest in dollar denominated bonds without the risk of US freezing/confiscating them? If the Afghan government held their reserves in these bonds instead of NYC banks, then the US would not have been able to steal them? Why can’t China simply write trade contracts with prices in US dollars but directly pay without going through SWIFT? Contracts often have clauses on what happens if things go wrong. Could the clause be to pay in gold at the going rate in dollars at the moment of payment plus a premium? If the US simply said they will not honor any bonds currently owned by China regardless if China then sells those US treasuries to a third party, then how would these bond sales in Saudi Arabia allow China an alternative to risking their U.S. treasuries being made worthless? China owns Treasuries. If they sell their US treasuries,then they can quickly turn around and buy back their Bonds issued in Saudi Arabia without flooding the market with a sudden $300 billion sale of U.S. treasuries? Or is it China’s way to create the threat of crashing the dollar by dumping dollars in a Saudi exchange market? What is the benefit to China by issuing these bonds (they don’t need the dollars).

[@segovia5758]

I have very little knowledge of economics. Still, the US has weaponised the dollar and SWIFT, and many BRICS supporters respond by wanting to see dollar influence diminished. However dollar per se is ok, it's being used to steal money eg from Russia, to control smaller economies and threaten eg SWIFT that''s the issue. So if an alternatvie means of communications/control were universal (say block chain based) then China would benefit as it makes so much in dollars and doesn't want rupees. But smaller countries may still prefer to trade in own currencies or a third one for various reasons. I think the question may be whether if a sensible US adminstration (contradiction in terms sadly) was able to discuss and not dictate then perhaps China may accomodate. Else, if war is effectively declared on it, and it can trade outside of SWIFT then it could unleash huge dollar dealing being a dollar world bank for at least a sizeable part of the world.

[@Trevor3777]

The US doesn't "discuss". It threatens and bullies.

[@mikegr4587]

I cant see what are you talking about. All countries issue debt in dollars. It would have been significant if the bonds where in yuan.

[@jimmylam1486]

Good article, bringing up a new perspective to the US-China competition. hank you.

[@TacticalMayo]

No no no no no no no no no no no it's not competition. You don't understand. We in the west you're not seeing this competition. We see it as the first stages. Ww3.

[@David-p9y9c]

Why not trade them back to the US for commodities like petroleum or LNG? You dump them and gain a usable resource. Win-Win

[@rebeccaaldrich3396]

Actually, you remind me of old Ray Dalio. He would go on and on about how everyone should invest in China. Well, even he's had to come to terms with reality. It doesn't matter how much money you have if you don't know how to use it. Eventually it will run out. I bet you your next video will be about the Russian Ruble. Why don't you do that one? Face it, the world is aware of the dangers of totalitarian governments. Tariffs against Chinese goods are being implemented in many countries because they want to support their own economies. The earthquake has already happened and the tsunami is on the way.

[@sabercruiser.7053]

🔥🔥👍👍

The moral of the story is anyone who holds sufficient dollars can play the finance games too and get the benefits.

[@stephenlock7236]

I guess the higher the risks the higher the potential gains. Until the US regime feel otherwise.

[@Utube1024]

Wrong. Japan holds sufficient dollars. Do they strong enough to play the games?

[@michellehavre6821]

NO!! US is able to play this game to her benefits because the dollar is back but by the US navy and airforce ready to enforce it/ Any challenge will be against the US military and few is dare or even have the stomach to view the might of the US Military

[@Keepskatin]

​@@michellehavre6821China would destrot Americlan military,so would Russia

[@null-r2f]

No, why doesn't Saudi Arabia issue their own dollar bonds, they have a $100 billion a year trade surplus. Because they don't have enough political and military power to make everything safe, so they have no choice but to cooperate with China to avoid having to keep buying US bonds with their trade surpluses.

[@ChinaSongsCollection]

If there are in fact $40 billion of international money chasing after this $2 billion bond China is issuing as you seem to be implying, then what would you say is the chance China will issue much bigger bond sales in the near future? 🤔

[@samahirrao]

China is brilliant.

WHY BOND PEOPLE WHEN YOU CAN BOND RESORCES !!!!!

[@strassmanncai]

US dollar is good thing, as long as it is not controller by US treasury...

[@maxchen7229]

When you have strong power, you need using it with precaution. Otherwise, the power will not last long.

[@TacticalMayo]

Not true at all. You cannot have two powers because you have to have the other side accept losing their power and trust me, America won't and our reaction will be apocalyptic

[@bombardus2258]

Nothing is forever......

[@Keepskatin]

the first shall become the last🙏🏾☕

[@TacticalMayo]

And reaching for the United States number one spot. The US will make sure that's what happens to the whole world.

[@BJ111-k5v]

US will introduce new law requiring the US' approval to sell dollar bonds. Those refusing will be sanctioned.

[@ginettenestor5108]

That’s exactly why others are doing everything in their powers to stay far from USD.

[@ToddClemmer]

Is this the end of the central bank's fiat currency? FIFY.

[@shaikhhar6911]

By this adoption, doesn't it just increase demand of the US dollar ?

[@Trevor3777]

But I don't think they have to repay in dollars which gets countries out of the endless loop.

[@joshJ.]

China is playing multiple “3-D Chess” while USA is missing a few of its checkers pieces 😂

[@TacticalMayo]

That is an absolute complete lie.

[@TacticalMayo]

It's not true at all. That's 100% lies

[@ZhenYae]

The New Federal Reserve.. 😊😊

[@souria1671]

😂😂👍👍

[@TacticalMayo]

Oh my God listen to this nonsense 🤣

[@ZhenYae]

@TacticalMayo Who is not laughing at the Americans. Not the Americans.

[@ZhenYae]

@TacticalMayo USD to counter USD...

[@ZhenYae]

@TacticalMayo Do I get to collect from the 1.6 billion budget.

[@StephanieG.Augustus]

More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.

[@KarenJ.Mancia]

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[@briankelley-n9c]

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[@JamesKjones-n7r]

How can I reach this advisers of yours? because I'm seeking for a more effective investment approach on my savings?

[@briankelley-n9c]

Her name is Stacy Lynn Staples. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

[@CharlesT.Foster]

I just curiously searched her up, and I have sent her an email. I hope she gets back to me soon. Thank you

[@joelam2792]

I think so ! US dollar will no longer dominant currency in the world. The Brics Currency will be used for the other half of the world trading platform. That way, US can’t abuse their power to the other countries.

[@TacticalMayo]

Oh yeah suuure and the US will just sit there and accept and everything will be fine LOL 🤣

[@andrewrobinson850]

Question: what would happen if china dumped all of its US dollar bonds ?