Some are saying that this latest dump by Beijing is indicative of a larger trend – of buyers remorse, as Asia moves to limit its exposure from a coming collapse of the US dollar as the world reserve currency.
So, as China and Japan back off of the dollar, we see Belgium moving in to pick up the difference on a US paper shortfall. Interesting.
Maybe it’s payback (or ponzi pay-dirt?) time for Europe, who were bailed out during the Wall Street TARP affair and mortgage-backed securities ’buyback scheme’.
With so much toxic and no-hope debt floating around Europe, maybe those stacks of thin US Treasuries look like the lesser of two evils?
We’ll see, but this is definitely a shift in trends…
Shocker: China Dumps $50 Billion in US Treasury Paper, Leaving Europe to Pick Up Slack (external - login to view)