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| China-Japan-Koreas |
| China dumps dollar |
| 2010-08-17 |
| The timing of this is not a coincidence. I believe the Chinese will do whatever they can to disrupt markets in the lead up to the election. An effort, probably coordinated with Soros, to topple American capitalism through revolution at the ballot box. Not this time, perhaps, but they have enough to keep trying until they succeed. China cut its holdings of long-term Treasuries by $21.2 billion in June to $839.7 billion, a U.S. government report showed yesterday. Total Chinese investment in U.S. debt declined 2.8 percent to $843.7 billion, the least in a year, following a 3.6 percent slide in May. That's a lot of paper to put on the street. The effect is not immediately dramatic, but the cumulative effect will reach a tipping point. China, AmericaÂ’s largest creditor, is cutting back after scrapping its currency peg in June, giving it less reason to buy dollars and invest them in Treasuries. China is also turning more bullish on Europe and Japan, purchasing bonds of both nations. |
| Posted by:Nimble Spemble |
| #2 That paper is Treasury notes converted to Federal Reserve notes. More liquid. You can buy things with them. Like Euros. Right before an election. |
| Posted by: Nimble Spemble 2010-08-17 19:41 |
| #1 That's a lot of paper to put on the street. It doesn't go on the street it get bought up by the Fed using newly printed dollars. Something that doesn't look like stopping until either inflation spikes up or the USD falls sharply (probably both together). In essence this is a trillion dollar gamble that deflation will be around for a while. |
| Posted by: phil_b 2010-08-17 19:26 |