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Global creditors in action: The US sell-off is just the beginning

Latest international capital flow data shows that the scale of US debt held by a superpower has fallen to $7.57 trillion, the lowest level in nearly sixteen years. To put this in perspective, during the peak in 2011, this number exceeded $1.3 trillion — in just over a decade, holdings have been halved.

This is not an isolated incident but a long-term signal. Since 2011, this major creditor has been steadily reducing its US debt holdings while significantly increasing its holdings of hard assets like gold. As of November 2025, its official gold reserves have increased to 74.12 million ounces. The logic behind this is clear: optimize foreign exchange reserve structure and reduce exposure to a single asset. Deeper considerations include vigilance against US use of financial hegemony to freeze foreign assets and concerns over the long-term stability of the dollar system.

The US debt dilemma has become an obvious problem. The federal debt has surpassed $37 trillion, accounting for over 123% of GDP. A recently proposed fiscal bill has been described by lawmakers as a "ticking debt bomb" because it will add trillions of dollars to deficits over the next decade. In a high-interest-rate environment, annual debt interest payments have become one of the government’s largest fiscal burdens.

The Federal Reserve’s operations are becoming increasingly complex. After halting quantitative tightening, a new "Reserve Management Purchase" (RMP) operation was launched in 2026 to maintain market liquidity. The market generally perceives this as a form of easing, even suspected of monetizing to cover government deficits, which directly undermines the independence of the central bank. This "borrowing from Peter to pay Paul" approach is gradually eroding global confidence in the dollar.

A silent reorganization of the financial order is underway. From Washington’s debt negotiation rooms to the vaults of central banks around the world, signals are hard to ignore: when the largest creditor begins to withdraw from dollar assets, how long can the dollar-based system built on debt last?

What is your judgment — who will be the next major central bank to turn away from dollar assets?