I may know why China is selling US bonds and buying gold. Could it be because China can't pay its old bonds to US bondholders?

[kyzr]

So if congress is interested in collecting a $trillion from China for US bondholders, and China is divesting US bonds and buying gold, there goes our collateral?

US Senators Introduce Groundbreaking Bill to Collect $1 Trillion Chinese Debt Owed to Americans

Have you heard about the U.S. Senators’ bold move to recover $1 trillion from China? Find out how this groundbreaking bill could impact American finances. Continue reading for in-depth insights.

www.lawyerherald.com

US Senators Introduce Groundbreaking Bill to Collect $1 Trillion Chinese Debt Owed to Americans​

China Abruptly Sells $8,200,000,000 in US Treasuries As Dollar Extends Massive Losses - The Daily Hodl

China's US Treasury holdings have dropped to 2009 levels after its central bank sold more than $8 billion in the month of April.

dailyhodl.com

China Abruptly Sells $8,200,000,000 in US Treasuries​

This is a new fact for me. I didn't know China owes us a $trillion for bonds.

So what are the odds Trump/Vance can collect what is owed from China?

We still have about $757b of bonds held by China, can they be used as repayment?

 

[pknopp]

A friend of mine has Glen Beck on in his garage. I had to chuckle the other day. For years Beck pushed gold. On his show the other day he warned over the price of gold.

 

[kyzr]

A friend of mine has Glen Beck on in his garage. I had to chuckle the other day. For years Beck pushed gold. On his show the other day he warned over the price of gold.

A broken clock is right twice a day. When China started buying tons of gold, the price of gold went crazy.

How long will they be buying?

Until they dump all US bonds?

 

[cnm]

So if congress is interested in collecting a $trillion from China for US bondholders, and China is divesting US bonds and buying gold, there goes our collateral?

US Senators Introduce Groundbreaking Bill to Collect $1 Trillion Chinese Debt Owed to Americans

Have you heard about the U.S. Senators’ bold move to recover $1 trillion from China? Find out how this groundbreaking bill could impact American finances. Continue reading for in-depth insights.

www.lawyerherald.com

US Senators Introduce Groundbreaking Bill to Collect $1 Trillion Chinese Debt Owed to Americans​

China Abruptly Sells $8,200,000,000 in US Treasuries As Dollar Extends Massive Losses - The Daily Hodl

China's US Treasury holdings have dropped to 2009 levels after its central bank sold more than $8 billion in the month of April.

dailyhodl.com

China Abruptly Sells $8,200,000,000 in US Treasuries​

This is a new fact for me. I didn't know China owes us a $trillion for bonds.

So what are the odds Trump/Vance can collect what is owed from China?

We still have about $757b of bonds held by China, can they be used as repayment?

It probably goes back to China being charged for the Opium wars.

 

[1srelluc]

Meh, just another chi-com manipulation.

 

[Woodznutz]

If China is dumping bonds in order to buy gold they are selling them below face value and taking a huge loss. This will be a windfall for those who buy up those bonds and hold them to maturity.

 

[Toddsterpatriot]

So if congress is interested in collecting a $trillion from China for US bondholders, and China is divesting US bonds and buying gold, there goes our collateral?

US Senators Introduce Groundbreaking Bill to Collect $1 Trillion Chinese Debt Owed to Americans

Have you heard about the U.S. Senators’ bold move to recover $1 trillion from China? Find out how this groundbreaking bill could impact American finances. Continue reading for in-depth insights.

www.lawyerherald.com

US Senators Introduce Groundbreaking Bill to Collect $1 Trillion Chinese Debt Owed to Americans​

China Abruptly Sells $8,200,000,000 in US Treasuries As Dollar Extends Massive Losses - The Daily Hodl

China's US Treasury holdings have dropped to 2009 levels after its central bank sold more than $8 billion in the month of April.

dailyhodl.com

China Abruptly Sells $8,200,000,000 in US Treasuries​

This is a new fact for me. I didn't know China owes us a $trillion for bonds.

So what are the odds Trump/Vance can collect what is owed from China?

We still have about $757b of bonds held by China, can they be used as repayment?

China doesn't owe $1 trillion on old bonds.

 

[kyzr]

China doesn't owe $1 trillion on old bonds.

That's what the OP link says. JD Vance thinks they do.

 

[Lesh]

That's what the OP link says. JD Vance thinks they do.

Well there’s your problem

 

[Toddsterpatriot]

That's what the OP link says. JD Vance thinks they do.

The OP link is wrong.

 

[Concerned American]

China doesn't owe $1 trillion on old bonds.

I'm scratching my head trying to figure out how they came up with the idea that bond holders OWE anything. They are the creditors not the debtors.

 

[Toddsterpatriot]

I'm scratching my head trying to figure out how they came up with the idea that bond holders OWE anything. They are the creditors not the debtors.

China issued bonds in the early 1900s and stopped paying after the commies took over.

It takes really bad math, like AOC level bad math, to say they owe $1 trillion or more.

 

[Concerned American]

China issued bonds in the early 1900s and stopped paying after the commies took over.

It takes really bad math, like AOC level bad math, to say they owe $1 trillion or more.

Thanks, I missed that. I thought the OP was about the massive number of American treasury bonds that they currently hold.

 

[Toddsterpatriot]

Thanks, I missed that. I thought the OP was about the massive number of American treasury bonds that they currently hold.

From the first article in the OP.

The roots of the debt tussle trace back to the early 20th century when the Republic of China, pre-dating the PRC, rolled out significant volumes of sovereign gold-denominated bonds. These long-term bonds, secured by Chinese tax revenues, were designed to fund infrastructure development and various governmental programs. The debt obligations remained unsettled after the establishment of the PRC in 1949, sparking the ongoing dispute.

 

[candycorn]

So if congress is interested in collecting a $trillion from China for US bondholders, and China is divesting US bonds and buying gold, there goes our collateral?

US Senators Introduce Groundbreaking Bill to Collect $1 Trillion Chinese Debt Owed to Americans

Have you heard about the U.S. Senators’ bold move to recover $1 trillion from China? Find out how this groundbreaking bill could impact American finances. Continue reading for in-depth insights.

www.lawyerherald.com

US Senators Introduce Groundbreaking Bill to Collect $1 Trillion Chinese Debt Owed to Americans​

China Abruptly Sells $8,200,000,000 in US Treasuries As Dollar Extends Massive Losses - The Daily Hodl

China's US Treasury holdings have dropped to 2009 levels after its central bank sold more than $8 billion in the month of April.

dailyhodl.com

China Abruptly Sells $8,200,000,000 in US Treasuries​

This is a new fact for me. I didn't know China owes us a $trillion for bonds.

So what are the odds Trump/Vance can collect what is owed from China?

We still have about $757b of bonds held by China, can they be used as repayment?

Do you know how bonds work?

 

[CrusaderFrank]

So if congress is interested in collecting a $trillion from China for US bondholders, and China is divesting US bonds and buying gold, there goes our collateral?

US Senators Introduce Groundbreaking Bill to Collect $1 Trillion Chinese Debt Owed to Americans

Have you heard about the U.S. Senators’ bold move to recover $1 trillion from China? Find out how this groundbreaking bill could impact American finances. Continue reading for in-depth insights.

www.lawyerherald.com

US Senators Introduce Groundbreaking Bill to Collect $1 Trillion Chinese Debt Owed to Americans​

China Abruptly Sells $8,200,000,000 in US Treasuries As Dollar Extends Massive Losses - The Daily Hodl

China's US Treasury holdings have dropped to 2009 levels after its central bank sold more than $8 billion in the month of April.

dailyhodl.com

China Abruptly Sells $8,200,000,000 in US Treasuries​

This is a new fact for me. I didn't know China owes us a $trillion for bonds.

So what are the odds Trump/Vance can collect what is owed from China?

We still have about $757b of bonds held by China, can they be used as repayment?

This is precisely why DOGE was so important

 

[candycorn]

This is precisely why DOGE was so important

Maybe someone on DOGE could explain to you that bond holders are owed money...they don't owe money; they bought the bond and are paid back with interest.

The OP apparently doesn't understand that.

 

[berg80]

This is a new fact for me. I didn't know China owes us a $trillion for bonds.

The debt is owed to the bond holders, private citizens, not "us" as in the government. OTOH, the government could acquire the bonds and then seek payment on behalf of we the taxpayers.

The risk of doing so is China accelerating its sale of US bonds and or boycotting the future purchase of US debt in retaliation. Having the effect of raising the interest rate we have to pay to those entities still buying our bonds and T-bills and thus exacerbating this problem.

For years, deficit hawks have been groping for ways to shock politicians and the public into getting serious about the skyrocketing federal debt. They hoped they had finally found the right talking point when the United States recently reached a disturbing new milestone: Debt had shot past 100 percent of gross domestic product.

“We’ve heard plenty of alarm bells in the past few years about our fiscal path, but this one rings especially loudly,” wrote the Committee for a Responsible Federal Budget, the organization that calculated the March level of federal debt held by the public as a share of G.D.P. The like-minded Peterson Foundation called it “an alarming fiscal milestone.”

The problem is, few people seemed particularly alarmed, outside of a flurry of somber speeches and opinion essays.

Within a week of the reporting of the statistical landmark, Defense Secretary Pete Hegseth was on Capitol Hill defending the largest Pentagon budget request in American history. And the Senate proceeded with efforts to pass a $72 billion immigration enforcement package through reconciliation, bypassing a potential filibuster and waiving its own rules against deficit-increasing legislation.

https://www.nytimes.com/2026/05/16/business/dealbook/debt-100-percent-gdp.html

 

[berg80]

If China is dumping bonds in order to buy gold they are selling them below face value and taking a huge loss. This will be a windfall for those who buy up those bonds and hold them to maturity.

Key Details on China's Selling of US Bonds

• Reduced Holdings: Data from the U.S. Department of the Treasury shows China's holdings fell to US\(\$688.7\) billion as of October 2025, marking a 17-year low.
• Market Impact: While China is selling, the impact on U.S. bond yields has been relatively minor, as other foreign buyers (such as Canada and the UK) and private investors have bought a significant portion of the available debt, notes Barron's.
• Methodology: The reduction is likely a gradual reallocation into other assets, including gold, rather than a rapid, disorderly, or panic-driven dump, argue analysts on RIA and Yahoo Finance.
• Not a "Fire Sale": The selling is widely seen as a long-term strategic move to reduce reliance on the U.S. dollar, notes Investopedia, rather than a forced sale of assets at a loss below market value, as indicated in Reddit discussions. [1, 2, 3, 4, 5, 6]

 

[CrusaderFrank]

Maybe someone on DOGE could explain to you that bond holders are owed money...they don't owe money; they bought the bond and are paid back with interest.

The OP apparently doesn't understand that.

But the borrower is a crack spending addict and DOGE was supposed to be his last shot at rehab