Dollar Dominance Falters as Global Investors Abandon US Debt

The phrase 'In God We Trust,' once a symbol of American economic predominance, is losing its grip as trust in the US dollar wanes. The national debt has surged to over $40 trillion since Donald Trump took office, doubling in less than a decade.

This staggering financial burden, compounded by escalating inflation exacerbated by ongoing geopolitical conflicts, has spurred investor unease. Global bond markets are reacting strongly, with a recent sell-off of US dollar-denominated debt contributing to rising interest rates, the highest levels seen in decades.

The yield on 10-year government bonds, a global benchmark for risk-free investments, has soared from around 4.65% to over 5.2%. Historically trusted partners are diversifying away from US assets, with Norway's Sovereign Wealth Fund publicly announcing a significant reduction in its US Treasury holdings.