China Dumps $50 Billion in US Treasury Paper

[Locutus]

Leaving Europe to Pick Up Slack



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

 

[petros]

a coming collapse of the US dollar as the world reserve currency.

The US oil dollar is a hot potato.

It's time to buy silver and gold again.

 

[mentalfloss]

Free market.

 

[petros]

Awesome for those who take a few hours week to keep up and jostle. There is a sector of the economy that has had $63B invested into it last year and as much this year. You could set yourself up nice.

 

[Liberalman]

I am sure other investors will snap up that money

 

[taxslave]

I am sure other investors will snap up that money

Of course but it wouldn't make such a cool headline,

 

[darkbeaver]

I am sure other investors will snap up that money

That's why your never going to manage my investment portfolio.

 

[MHz]

China should dump it all and demand payment for the money the US owes them, that would pretty much end all the squabbling and we get our new 5th world country a bit ahead of schedule.

(in part)
China, which owned an estimated $1.317 trillion in U.S. Treasuries, is the number-one investor among foreign governments, according to the November 2013 figures released by the U.S. Treasury. This amounts to over 23.1% of the U.S. debt held overseas and about 7.5% of the United States’ total debt load.
http://bonds.about.com/od/bondinvestingstrategies/a/Chinadebt.htm

I am sure other investors will snap up that money

No doubt it will be the American taxpayer.

 

[BaalsTears]

America is becoming the Weimar Republic.

 

[captain morgan]

China should dump it all and demand payment for the money the US owes them, that would pretty much end all the squabbling and we get our new 5th world country a bit ahead of schedule.

China has already been buying assets using the T-bills as (100%) collateral.

Obviously a wash-trade and the US Fed Reserve is now stuck with that useless paper

America is becoming the Weimar Republic.

Sad to watch the metamorphosis in real time

 

[darkbeaver]

America is becoming the Weimar Republic.

History's repeating again, the same scam goes back to the dawn of banking. I imagine you're familiar with the way it works.

 

[Liberalman]

That's why your never going to manage my investment portfolio.

Your Loss

 

[Goober]

Can anyone explain why the Chinese would bring on a world wide depression by dumping US T Notes?
Thought so.

 

[darkbeaver]

Can anyone explain why the Chinese would bring on a world wide depression by dumping US T Notes?
Thought so.

To cushion China from the effects of economic collapse.

 

[Goober]

To cushion China from the effects of economic collapse.

They are already headed that way. Check out the debt the cities and provinces hold for inflated real estate.
A couple of trillion dollars in manufacturing assets sitting idle.
Empty Cities built, rows (miles) of apartments empty, infrastructure not used.
Makes their Foreign Currency reserves pale by comparison.

 

[eh1eh]

50 billion? Maybe that was Sochi paper. lol.

 

[darkbeaver]

They are already headed that way. Check out the debt the cities and provinces hold for inflated real estate.
A couple of trillion dollars in manufacturing assets sitting idle.
Empty Cities built, rows (miles) of apartments empty, infrastructure not used.
Makes their Foreign Currency reserves pale by comparison.

I didn't say it would save them just cushion the blow. I don't think there's many countries that will be immune to this disaster, some will swim most will sink. Bankers will become hunted criminals, there should be no place on earth safe for them.

 

[Goober]

I didn't say it would save them just cushion the blow. I don't think there's many countries that will be immune to this disaster, some will swim most will sink. Bankers will become hunted criminals, there should be no place on earth safe for them.

No country is immune- If a depression hits- the Chinese will have another internal revolution on their hands.
And the Govt will lose.
Lamp posts will be popular trial areas. Shortage of rope is my prediction.

 

[Trex]

I didn't say it would save them just cushion the blow. I don't think there's many countries that will be immune to this disaster, some will swim most will sink. Bankers will become hunted criminals, there should be no place on earth safe for them.

Just finished renewing your mortgage or applying for a credit card I presume?

 

[Toro]

It doesn't mean anything. US Treasury holdings by China has fluctuated over time. Plus, China needs liquidity given the problems in their financial markets.