US banks led by Goldman Sachs have borrowed a record Rmb47.5 billion in offshore renminbi debt so far in 2026, with Goldman accounting for the majority of self-led issuance, the Financial Times reported this morning.
Deutsche Bank placed the largest single panda bond ever issued by a foreign bank in March 2026 at Rmb5.5 billion
Things must be pretty dire when even Wall Street is buying Communist money.
This country is for sale and the Chinese have money. They don’t need to invade, they can just buy everything
China’s 10-year sovereign yield sits at roughly 1.82%, against 4.46% for the US Treasury equivalent. Borrowing in renminbi is approximately 60% cheaper than borrowing in dollars at current rates,
US treasury is regulating interest rates in a balance between controlling inflation and keep the currency stable.
When interest rates are so high and inflation is still above the desired level, it’s a sign of pressure against the USD, and a weak economy. Or at least an economy that doesn’t have much trust. High interest rates attract money but lowers investments as investments become more expensive to finance, and high inflation lowers consumption.I just heard a few days ago that the use of the USD as a global reserve currency has dropped significantly since Trumps “liberation day” maybe as much as 30%! Which is insane if true.
With this high interest rate, it will be very expensive for the federal government to finance the federal debt. And with the USD slipping as the global reserve currency, USA can no longer just print the money to pay it off, without creating more inflation and weakening the US dollar.
It seems USA is about to wake up to the reality of not being the global leader, and now having to pay their bills like everybody else.
The tariffs and sanctions USA made towards the world and especially China, is hurting USA way more than it is hurting the rest of the world.Apparently people in China have been joking about Trump being their comrade since last year. People keep claiming he’s working for Putin, but China is the real benefactor here. Trump couldn’t help them more if he tried.
The worst part is Americans will not recognize why this happened as we are too uneducated about our own place in the world. They’re more likely to fall for anticommunist fear mongering and blame the left in their own country for problems created by fascists. As a result, no reforms will happen and America will continue to become irrelevant. I’m not looking forward to that shitshow, and neither should anyone in this hemisphere. I’m so scared of the horrors an unstable and desperate US might inflict.
It’s like Brexit with the exception, that most citizen of the core country of The Great US Empire don’t really profit from the absurd benefits that come with being the defacto ruler of the world. They never got full state healthcare anyway. They never got a real social security net. All the profits were hoovered up by the military industrial complex and the Epstein billionaire club anyway. For the majority of the people, losing the world leader status might actually be a neutral change. They can’t lose what they never had.
No, it won’t be. The rich and powerful of this country not being able to so easily exploit global markets will cause them to squeeze us more. They will pass all their losses onto us.
Absolutely, I bet most Americans have no idea what they are throwing away.
It’s extremely sad, I have suspected this shift in power would happen eventually, because China is just too big to not be a global power.
But before Trump was elected the first time, I didn’t expect the alliance between EU and USA to crack so bad, and Trump has moved China’s place on the world stage to arrive a decade earlier.Unfortunately with Trump being reelected, I saw this breakup coming from a mile away. And on liberation day I knew for sure USA would soon be finished as the premiere global leader. It was happening already before the Iran invasion, the Iran invasion just made it a lot worse in Asia.
Trump is destroying USA turbo charged, and IMO you are 100% right in that he couldn’t make it worse if he was doing it on purpose.
I just hope I’m not as right about the upcoming red scare as we both were about Trump destroying US hegemony. If Americans end up being that predictably stupid, it’ll be really sad.
Being in Europe, I don’t see the red scare as a major problem, and I find it hard to understand what this red scare in USA is really about.
I absolutely understand the fear of the insanity of the McCarthyism, but I don’t see that as a likely problem today, where MAGA embraces Russia as a partner more than an opponent.
I don’t think most Americans even understand what red scare is supposed to mean anymore.
China is beating USA as the better capitalist than USA, and capitalism is a seen as a greater virtue than democracy among the MAGA crowd, that is ready to embrace an authoritarian regime to get rid of annoying liberals and their inconvenient facts.So I’m not quite sure what kind of red scare it is you are afraid of?
Red scare from liberals. Anti communism in America is as old as communism, with the unions and the majority of the worker class hostile to even a whiff of it. The entrepreneurial dogma runs deep, and anything that questions it is seen as unamerican. This is so baked into the American ethos that the impulse still exists for people who grew up after the collapse of the Soviet Union. The “common sense” I heard growing up is that communism is just as bad as fascism, and that liberal capitalism is the reasonable center. Even if socialism has become destigmatized, the attitude still lies dormant.
With the fall of liberal democracy to fascism, liberals’ faith in their system has been shaken to the core. Many liberals still think that they live in a “free” country, even as a fascist dictator tightens his grip on the government. They are increasingly scared and desperate for answers, and the oligarchs of this country know this. If they can get even half of the liberals to side with the fascists on nationalism against “communist” China, they will have a solid majority. It doesn’t matter to those people that China is a capitalist state, they wave the flag and they are national competition.
The real watershed moment will come when China takes Taiwan. Everything Trump has done makes their takeover even easier, and I thought it was likely even before his second term. Whether Taiwan gets invaded or surrenders, China will instantly become the world’s lead chip manufacturer. If there is any US or Taiwanese resistance, it will burst the AI bubble and send the US economy into a tailspin. If everything happens totally peacefully, then the US will fall behind technological in the long run. Either way, anticommunism will be pushed on the public by our entire media ecosystem and many Americans will fall for it.
I agree that the sentiment has been a lot like you describe, just putting some personal observations in there. I know the below statements do not reflect your own opinion, but the national trend in USA.
communism is just as bad as fascism
OK that’s maybe overstating it, but both are authoritarian.
liberal capitalism is the reasonable center
It’s better, but Social democracy is the actual center of balance between the two IMO. Today some people include Social democracy as a form of socialism, but originally socialism and communism are near identical. With Social democracy being very different because it work with free market economy and democracy, but with regulation that protect workers and ordinary people much more than for instance American capitalism, that is extreme by European standards.
I also agree that in USA oligarchs are a major danger, the infamous Koch family has done enormous damage to democracy in USA, and Musk definitely helped Trump win a state in the presidential election.
But I think the red scare stigma will be harder for the right to use against the American people, because politicians like Bernie Sanders and AOC are very popular, together with many Social Democratic policies. They will probably try, but for now, their “weapons” are fear of immigrants and to lose religious “freedoms”. Like to discriminate minorities. This is packaged with extreme propaganda about how Liberals will take your money when they increase taxes.
Unfortunately the Trump election has showed us that the American population is incapable of seeing through these lies, so your fear is valid, I just don’t think they will go for the old fashioned “red scare”.
As it is, I don’t think China will take Taiwan, they want Taiwan to reunite with China, but seeing how bad it went for Russia in Ukraine, and now for USA in Iran, I think China will pursue a peaceful joining like they have always claimed for decades is their policy, even if it wasn’t always entirely true.
I think Taiwan will surrender after being pressured to buy Trump. If they get invaded and the US needs to back them up, either America will lose or America will be seen as weak by not helping their ally. If Taiwan surrenders, Trump saves the most face. It all depends on how stupid Trump is and how distracted he is by other matters. At the end of the day, allies don’t matter to him, and he’s a bully who only wants easy results against weak enemies. I don’t think he sees China as weak like he saw Iran.
As far as the red scare goes, I don’t think it’ll be as successful as past efforts, especially in the long run. It will be messy and horrible to live through, but the very same sins of capitalism that allowed fascism to rise will prevent the right from squashing socialism like they did before. Socialism was crushed in the past because of the goodwill liberalism earned through social democracy. By trying to crush the left without offering anything in return, liberalism will lose even more luster than it already has. The fascists could capitalize on this, but so could feudalists, so could regionalists, so could socialists. Regardless of who comes out ahead, the red scare will do more to harm liberalism than anything else.
