Jump to content

China is Unloading its Treasury Bonds


Recommended Posts

BKK Bank (this morning): USD 30.93 to Thai Baht


Mad Hedge Fund Trader

Oil Price

August 27, 2010


It looks like the smart money these days is found in China. While American investors have been scrambling over each other to buy more Treasury bonds at historically low yields, China has begun quietly unloading some of its own enormous holdings. In June, the Middle Kingdom sold $21.2 billion of paper, reducing its net long to $839.7 billion. This is little more than 10% of the total $8.18 trillion in federal debt that Uncle Sam has outstanding...

Link to comment
Share on other sites

  • Replies 40
  • Created
  • Last Reply

Not sure what you are saying (due to many restrictions it's not easy for you and me to buy stocks or bonds in China if that's what you suggest), but I read this simply as China loosing a bit more of its trust in the US economy and the dollar as a reserve currency. You'll see them take on Yen or Euro next...

Link to comment
Share on other sites

Yes, the US dollar is done, only a matter of time. The "experts" say maybe as early as the end of 2010 or up to three years from now, the dollar will be in the dirt.


Could of, would of, should of bought a pile of Yen and Thai Baht a few years ago...


How did you come to this conclusion? If the USD is gone, what will be the alternative? The very expensive YEN, based on an economy which is struggling for more than a decade or the Euro, which is based on a mix of some strong, but many very weak countries' economies?



Link to comment
Share on other sites

China Buys Euros as Fear of World Depression Grows




The US Treasury has just announced that China’s official holdings of U.S. Treasury securities declined by about $30 billion between April and May of this year, from about $900 billion to some $868 billion. According to the US authorities, this means that Chinese holdings of US government paper are now at the lowest level in the past year. A 2% to 3% decline in a month does not qualify as massive dumping, but simply means that China is in the process of diversification. It is also very likely that China has more U.S. Treasury bonds than this official count would indicate, quite possibly through proxy purchases via Hong Kong and other places...



Link to comment
Share on other sites

China's selling of Treasury Bonds is deflationary for the US.


There was an article this morning that if the situation gets any worse "the[uS]Fed could buy hundreds of billions of dollars in Treasury bonds and other securities, aiming to lower long-term interest rates and keep a cycle of falling prices known as deflation from taking hold."

Link to comment
Share on other sites

Let them eat rice!


Really you think they care? Majority of Chinese have fuck all, they just start ahead of you when things get better again.




They sell to Africa and the rest of the world.


Africa currently growing faster than Asia, China spending and EARNING big money there! And USA companies and investors?


Africa, Nah, we're not donating money to there.


Dumb Fucks


Africa is making huge leaps and China and India are laughing all the way to the bank

Link to comment
Share on other sites

Anything , sir , works after the principle of a balance . Overweight at one end will adjust itself for sure .


The currently strong position of China is due to an artificial currency ratio which keeps chinese goods cheap and the fact they sell their goods " under value " . The undervalued aspect is Chinese labour force . They work 7 days a week to make you buy a cheap fridge .


90 % of my business depends on low price Chinese goods , I am giving myself another 3 years to exploit this situation til it is over .




A Buffalo_Bill economy statement

Link to comment
Share on other sites


This topic is now archived and is closed to further replies.

  • Create New...