Britain’s City of London, in tandem with the offshore banking centers situated in the Cayman Islands, Luxembourg, and Canada, are gobbling up U.S. Treasury debt at a rapid rate, at the same moment that China is dumping that debt, as part of the Global South’s process of de-dollarizing in order to create a new anti-colonial, development-pivoted world credit system. But the City of London crowd is buying up U.S. government debt in much greater volumes than China is dumping it.
One can ask whether this process involves a hidden agreement, between London, Europe and the United States, to prop up the surging U.S. debt, the growth of which is, in fact, key to the U.S. increase in its financing for arms production and supply to the NATO proxy war against Russia in Ukraine, the Israeli genocide in Palestine, and the trans-Atlantic military build-up against China in Taiwan.
Between May 2023 and May 2024, China reduced its holdings of U.S. Treasury debt from $846.7 billion to $768.3 billion, a cut of $78.4 billion, according to the U.S. Department of Treasury’s latest data. Japan’s foreign holdings of U.S. Treasury debt held steady, rising slightly from $1.097 trillion to $1.128 trillion.
