Mike Shedlock: China continues to accumulate dollars and prioritize U.S. treasuries

Mike Shedlock: China continues to accumulate dollars and prioritize U.S. treasuries
China accumulating dollars, prefers treasuries

Mike Shedlock, author / blogger at MishTalk, comments on China's continued accumulation of dollars.

He explains that China would prefer to purchase major assets like Boeing if allowed, but instead focuses on buying U.S. treasuries and other assets such as land or auto parts dealers, due to restrictions. Shedlock argues that dollar dominance will persist as long as the U.S. maintains sizable trade deficits and criticizes those who overlook this economic reality.

Shedlock has previously noted that long bond yields remain above 5.0 percent, indicating ongoing pressure in U.S. bond markets. He also remarked when U.S. debt again exceeded 100 percent of GDP, challenging narratives about historic debt levels. These observations frame his ongoing commentary on U.S. financial dynamics.

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