America's Financial System Reaches Crisis Mode — China's Latest Move Pushes It Closer to Collapse

Video Description

China, America's largest foreign creditor holding over $800 billion in U.S. Treasury bonds, just announced it will completely halt all future Treasury purchases and is "evaluating the strategic value of existing holdings"—a thinly veiled threat to start selling. This came 48 hours after Trump imposed 60% tariffs on China, and it's not economic competition, it's financial warfare targeting the foundation of American power: the ability to borrow $10-12 trillion annually at low rates to fund a $2 trillion deficit and $36 trillion total debt. Within hours, Treasury yields spiked 35 basis points (adding $125 billion to annual interest costs), the dollar fell 2.3%, mortgage rates jumped from 7.2% to 7.8%, and gold surged 3.4% as the entire global financial system began repricing American assets in real-time. China isn't just retaliating with tariffs—they're attacking America's ability to fund itself, and if they dump even a fraction of their holdings, borrowing costs explode, the deficit spirals, the dollar collapses, and the 80-year era of American financial dominance ends. This is the most direct challenge to dollar reserve currency status since Bretton Woods 1944, and historians may look back at this moment as the beginning of the end of American financial hegemony.