CHINA.. Dumping Billions of dollars of T-Bills

S. Lindsey's picture

The purge is beginning. China warned us about our debt.

Economists who are not in the influence sphere of the Government have warned that this event was likely to happen if we did not control our debt.

What did this administration do..

Present a budget that exponentially expands SPENDING at RECORD levels..Blowing out our debt beyond all reach..

Be ready for the dollars collapse. It's coming.

What replaces it is what this administration is reaching for.. a One World economy.

This one event will start an avalanche of others doing the same.

Why would any Government buy our debt when China is about to create the RICHEST investment opportunity for them.

With China bowing out.. Who is going to step up and finance our debt? Oh yeah The Fed will just print more..

We may not reach Zimbabwe level, but by Jan 2011 we are going to see a very different Country then we see now..

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JeffC's picture
Submitted by JeffC on Wed, 02/17/2010 - 6:16pm.

Lyndon Larouche's web site?

China dumping hundreds of billions of T-Bills?

What? Did you actually read the report? Chinese holdings of T-bills fell from $789 to $755 billion down $34 billion most of which they sold to Japan. It was not a massive panic sale either. It was political, to protest Obama's new tariffs on Chinese tires and other imports.

China Actions In US Treasuries

Furthermore, China only dumped some short term T-Bills that mature in less than a year and are yielding 0.09%, a truly abysmal rate because there is no inflation. And what did they do with some of that money? They bought long term T-Bills:

China's view of U.S. Treasury debt: Sell the short-term, hold the long-term

Take a glance at some of the MSM every now and then. There's a reason it's so popular. They print facts that can be checked and verified.

S. Lindsey's picture
Submitted by S. Lindsey on Wed, 02/17/2010 - 9:01pm.

However the largest dump EVER occured in December..

One correction China has dumped Billions and is expected to dump Billions more. Thats what I get for doing it on my Crackberry..

"China is creating a new $200-billion to $300-billion "sovereign wealth fund" to diversify its foreign holdings away from U.S.-dollar denominated debt securities and to make large-scale equity investments in companies overseas. The money will come from the more than $1.2 trillion the country currently holds in reserves, with at least another $400 billion expected to be added to that stockpile this year. China's reserves are said to be growing by about $10 billion per week. By 2010, China could be sitting on $3 trillion in foreign assets. The shift of wealth to China and U.S. indebtedness is growing in unison -- and at an accelerating rate."

"The precise composition of China’s foreign currency reserves is a secret. But economists believe that as much as 75 percent is believed to be in U.S. dollar-denominated instruments, mostly Treasuries, with the rest in euros and a small amount in yen." Global Research

"“Last month, China announced it was investing $3 billion of its dollar reserves in Blackstone Group LP, manager of the second-largest buyout fund, to boost its returns. What if China were to shoot itself in the foot and dump its entire Treasury portfolio in one fell swoop?

“It just so happens we have a real-world example of what it would mean, according to Bianco. The Bank of Japan bought $244 billion of Treasuries in the 12 months ended August 2004. During that time, U.S. long-term interest rates rose and the dollar fell versus the yen."Moneyweek

"China has been a net seller of some $45 billion of U.S. Treasuries over the last five months, wrote Alan Ruskin, chief international strategist with RBS Securities Inc."Much of China's selling has been in short-dated Treasury bills, but China has not indicated that it will buy longer maturity U.S. government notes and bonds instead.

"That is the bad news for the U.S. dollar and the Treasury market," Ruskin wrote."

China has warned a top member of the US Federal Reserve that it is increasingly disturbed by the Fed's direct purchase of US Treasury bonds Telegraph UK

Richard Fisher, president of the Dallas Federal Reserve Bank, said: "Senior officials of the Chinese government grilled me about whether or not we are going to monetise the actions of our legislature."

"I must have been asked about that a hundred times in China. I was asked at every single meeting about our purchases of Treasuries. That seemed to be the principal preoccupation of those that were invested with their surpluses mostly in the United States," he told the Wall Street Journal.

My Opinion stands.. China has warned us about our debt.. It is foremost on their minds. They are creating a $1 TRILLION dollar Investment Reserve which would allow other Country's to buy their BONDS instead of ours..

Jeff I know you suffer from the Carter Syndrome.. But not all COMMUNIST and DICATORS have a "Good Heart". They can and will stop buying our debt if they think they can survive the fallout.. By creating this reserve it guarantees that they can..

The liberties of a people never were, nor ever will be, secure, when the transactions of their rulers may be concealed from them. ~~Patrick Henry
"Illegitimus non Corborundum"

S. Lindsey's picture
Submitted by S. Lindsey on Wed, 02/17/2010 - 9:01pm.


Submitted by Davids mom on Wed, 02/17/2010 - 7:26pm.

Did you actually read the report?

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