China is squeezing the US financial system by cutting off money flows and launching a gold trading hub, which is bad for the dollar and US bond markets.

• Beijing is forcing Chinese investors to close US brokerage accounts within two years, sell their US stocks, and hand back profits made.
• China wants its $50 trillion in domestic savings staying inside China, not buying dollars and US assets.
• The yuan is at a three-year high and Chinese bonds are gaining while Western bonds are falling, pulling more money home.
• The US needs to borrow $900 billion in five months, and losing Chinese buyers makes that harder and pushes US rates higher.
• Iran may start selling oil in yuan instead of dollars, and China's payment system already hit record volumes as countries avoid US sanctions risk.
• In July, Hong Kong launches a gold trading system to challenge London and New York, backed by expanded gold storage and 18 straight months of Chinese central bank gold buying.

Outlook: The dollar's role in oil and global finance is weakening fast, and US borrowing costs will likely keep rising as foreign buyers pull back.