The End of an Era | Japan Loses Top Creditor Status After 34 Years
In a symbolic yet deeply revealing shift, Japan has officially lost its position as the world’s largest creditor nation — a title it held for 34 consecutive years. As of the end of 2024, Germany overtook Japan with net external assets totaling ¥570 trillion, compared to Japan’s ¥533 trillion. China remains in third.
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The Quiet Retreat from US Treasuries — A Signal, Not Just a Strategy
China is no longer treating US Treasuries as untouchable. Since 2022, it has cut its official holdings by over 27%—not in retaliation, but as part of a quiet strategic pivot. The focus is shifting toward agency bonds, gold, and non-US assets to reduce exposure to American financial dominance. Japan hasn’t sold—but it has spoken. Its finance minister recently called the country’s $1.13 trillion in Treasuries a “card” in US trade negotiations, signaling a willingness to rethink even long-standing positions. The message from both is clear: global confidence in US debt is not vanishing—but it is no longer unconditional. As the US pursues more aggressive trade and economic policies, investors worldwide are starting to ask: what happens when the world’s most trusted asset becomes a geopolitical risk?
#USTreasuries, #GlobalFinance, #ChinaEconomy, #JapanEconomy, #Geopolitics, #USChinaRelations, #DeDollarisation, #SafeAssets, #GoldReserves, #ForeignReserves, #TradePolicy, #CapitalMarkets, #EconomicSecurity