Global bond markets

 Global bond markets are in trouble. Interest rates are high and indebtedness high. This could be a turning point for the world.

USA treasury debt

As I understand things, US treasury debt (sold as bonds) now exceeds $40trillion, which is a huge number. Combined with high interest rates, this creates an enormous and worsening problem in the USA. The US economy is very big, but servicing this debt is a real problem. The debt is still growing.

The US dollar has been the reserve currency of the world since WW2. What would happen if China decided to buy oil in the Chinese currency (Yuan) instead and the rest of the world followed!! 

I am no economic expert, but I can see China becoming the dominant world power and the sun setting on the USA. In the Middle East, the USA is seen as not providing security and putting Arab countries more at risk.

UPDATE 1048z:  The UK has to watch its debt too. We are spending more than we can afford. See https://www.bbc.co.uk/news/articles/cly8kzkyvwgo

Government Bonds

Government debt is financed by investors putting money in government bonds.  These are usually considered a safe haven with a certain yield over a given period. 

The trouble is currently interest rates are much higher than a few years ago, so governments have to pay a large amount of their budget on servicing this debt as is the case in the USA and UK.

 The danger is foreign investors think twice about buying this debt in the future. 

At the moment the US $ is the world's reserve currency. For how much longer?