America's position of global economic stability is becoming shakier as the Trump administration piles on debt and doubles down on sanctions. Global investors are balking at U.S. bonds, with the 10-year Treasury yield topping 5 percent—its highest level since 2007. Foreign governments are hauling gold out of American vaults amid concerns about a $40 trillion debt burden and the excessive use of sanctions.

Treasury Secretary Scott Bessent remains confident in the U.S. financial system, arguing that bond auctions continue to operate successfully and the dollar still dominates global transactions at nearly 90 percent of foreign exchange trades. However, cracks are showing: central banks are diversifying away from dollar assets, with Norway’s sovereign wealth fund planning to reduce U.S. Treasury holdings.

The share of dollars in central bank reserves has fallen to 56 percent at the end of 2025 from 64 percent in 2015. European Central Bank President Christine Lagarde warned that erratic U.S. policymaking is setting the stage for a "global euro moment" as Washington increasingly weaponizes the dollar through financial sanctions.