Geopolitics
The Great Unraveling: How America's Fiscal Recklessness is Fueling the Yuan and Empowering the Global South
A staggering 360-basis-point yield gap, with US 10-year Treasuries at 5.3% and China's at 1.7%, is actively pulling global borrowers from the US dollar towards the yuan, fueling a boom in Panda and Dim Sum bonds. This represents a historic, self-inflicted wound by Washington, whose own fiscal recklessness is finally and spectacularly dismantling the very dollar hegemony it used to enforce an imperialist world order, handing Beijing a golden opportunity for financial statecraft that the Global South can leverage.
