Russia responds to tightening sanctions by selling off Treasury bonds that finance skyrocketing US debt. China also sells off $7 billion worth. If too many countries sell off their Treasury bonds, the US dollar will collapse and the US government will be forced to live within its means.
Russia Dumps Half of Its US Treasury Bonds
Russia has held a major selloff of US Treasury bonds, dumping some $47bn-worth of papers and momentarily dropping six places on a list of major foreign holders of US securities, recently released statistics for April have shown.
In just one month, Russia proceeded to sell $47.4 billion out of the $96.1 billion the country had in US treasury bonds in March. The latest statistics released by the US Treasury Department on Friday showed that, in April, Russia had only $48.7bn in American assets, occupying 22nd place on the list of “major foreign holders of Treasury securities.”
China, which holds the most US Treasury bonds, also sold off some seven billion-worth of its American assets, from March to April, and now has $1.18 trillion invested in securities. Japan, which is positioned second on the list, in the same timeframe sold…
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