WASHINGTON — China's holdings of US Treasury bonds tumbled in December, allowing Japan to take over as the top holder of American government debt, according to Treasury data released Tuesday.
China's bond holdings dropped substantially to 755.4 billion dollars in the last month of December from 789.6 billion in November, said the Treasury's international capital data report.
Japan's holdings increased to 768.8 billion dollars in December from 757.3 billion dollars in November, according to the data.
China had grabbed the top position from Japan in September 2008 and gradually increased its US bond holdings in relation to Tokyo until December last year, Treasury figures showed.
Beijing had expressed fears late last year about the safety of its dollar-linked assets in view of Washington's burgeoning budget deficit and the declining greenback at that time as the American economy struggled to emerge from a brutal recession.
US Treasury Secretary Timothy Geithner traveled to Beijing in June to reassure Chinese leaders, saying their money is "very safe" despite the US budget deficit, which he pledged to cut.
When Geithner said your money is safe, the Chinese audience has was addressing burst out laughing, which is a total insult, but the Chinese are no dummies and saw right through his smoke screen... The Chinese have been around far longer than the US are much better at horse trading and smelling bull shit...
ReplyDeleteSo is this what would get Uncle Ben to finally raise the damned interest rates?
ReplyDeleteIdiots here seem to forget the numerous articles posted here claiming china dumping US $$ and US bonds and as usual nothing happened and its the same again here. If idiots here has short memory..I don't and will keep reminding you.
ReplyDeleteUncle Ben should go back to his rice business. He's sure not good enough to keep his current day job.
ReplyDeleteHey, just stop buying Chinese crap, and we'll call it even.
ReplyDeleteChina sold 34.2 billion of their 768 billion holdings last month. That is around 5%. If they are selling... will they buy?? If they don't buy, don't we have to print more money to cover expenses?? I am asking anyone that knows this stuff better than I do for the answer please.
ReplyDeleteChina and Japan are 2 of the largest foreign governments to purchase our debt which is utilized to operate our government. Apparently both governments have realized the losing prospect of holding our currency because of it's progressive loss of value.
ReplyDeleteChina and Japan , in all probability, will continue to sell their holdings of our debt. It will likely be a steady, continual process. Excessive dumping of the debt by those nations would cause a greater loss of value, resulting in greater devaluation and loss.
When the true weakness of the dollar can no longer be denied, the bonds will be auctioned at substantially higher ineterest rates to attract buyers. This will mean the death of domestic business and stock returns.
Those that watch carefully know the truth has always been eternal. Help those worthy of your intentions, act with honor among men, and prepare to endure to the end.
Regarding whose buying. The Federal Reserve is. Something like 24% of the last 16 billion the treasury auctioned off were bought by an unknown direct buyer. Thats a record.
ReplyDeleteHow much longer do we have?
ReplyDeleteThe Chinese audience that broke into laughter when Geitner said their money was safe - yeah I remember that well. They must not have the banker media we have here.
ReplyDelete7:25: Same question I have. I'm assuming there is a false flag in our future. By this summer? Seems like that would be the way to go. CNN could blither on about that for months and distract everyone from noticing our checkbook no longer is balanced.
ReplyDeleteRegarding how much longer do we have. Who knows, not long though. Too many variables ie false flag terrorism, Iran, etc.
ReplyDeletePersonally, I dont think they can hold this together for another year. Add in the geopolitical issues that could act as catalysts and it could be sooner.
No harm in stocking food, fuel, defense. I would keep 6 months operating expense for businesses (3 months for personal accounts) in the bank and take everything else out.
Im selling my equities (IRA) positions. Only hold a couple anyway. Never be afraid to take a profit. Should be some good buying opportunities in the future so keep some powder dry. If the gov tries to takeover retirement funds and offer annuities then Im going to take the penalty and liquidate it.
The day has already been selected by the Oligarchs. Nothing is by chance. When their profits and power are at their peak.
ReplyDeleteThey have been the giant TIC on us bleeding us dry, but that will get old for them. They will want the thrill of the kill. As others have stated, that will come as a false flag, most likely blamed on Iran. Then they can enjoy their theatre of war, kick back and enjoy it.
If Obama is eligible to be president without a birth certificate then I would argue the EA can call himself whatever he wants.
ReplyDeleteAnyone that is will to carry out the agenda of our owners is qualified to be president.
ReplyDelete@8:32 next time you are sick may I recommend you see my neighbor he is a mechanic but sometimes calls himself doctor.
ReplyDeleteGerald Celente is a trends researcher and his forecast is grim. The mass media has begun to explain the predicament in more open language (not sufficient, but more open). I can't help, but wonder who the nae sayers are on this board. Who is it that continues to deny that we are facing serious problems. I understand making fun of the Mad Max scenarios sometimes mentioned here, but to totally deny the truth of numbers illustrates the weakness of understanding or social immaturity. Obama's stimulus package will not even keep up with our increase in young folks moving into the workforce after completing their chosen level of education. Creating government jobs are not productive jobs. The Democrates are sacrificing our country in an attempt to strengthen their party position and it is backfiring across the board. The fact is that the Dems are successfully finishing off our economy because they have no care of economy or world political power. Obama, Biden and Pelosi will put the final nail in our economic coffin before they are removed from office. China and Japan are finessing their position in the global economy by trying to hold us up. They now know we are to far gone and they are just holding us together for a slower collapse. I don't know whether to thank them or be pissed.
ReplyDelete7:15 you asked some excellent questions. Here is my reply and best explanation.
ReplyDeleteChina has a very large holdings of our bonds. If they try to liquidate their positions at one time, then they get screwed. Their own holdings get devalued. Kind of like shooting yourself on the foot.
So now they are slowly selling it off. 5% and maybe even less at at time. Now, who is buying? It can be your next door neighbor, pension funds, insurance companies, mutual funds but more likely than not, it is probably the Fed. And yes, they print money to buy up the bonds and this ultimately in the long run makes our dollars worth less and less.
Economics is called the dismal science. But I like to explain it just like an algebra equation or a see saw. In the end, no matter how many complex games the Fed, banks, etc... play, it all has to balance itself out.
This report from the future just in:
ReplyDeleteGerald Celente was beaten to death and torn limb from limb by a mob of crazed cannibals on a new york city street this morning. Only a few scraps of skin where found at the scene. When asked why they targeted
Gerald Celente one man replied 'He was wearing shorts and I noticed how plump his calf muscle looked. It was on at that point. He tasted very good from eating all that Elite Banker Food'