China Just Sold Off All US Treasury & Debt!

[LaoTze]

China Just Sold Off All US Treasury & Debt!​

 

[k1976]

In June, Japan, the largest holder of US debt, reduced its holdings of US treasury bonds by $10.6 billion, with total holdings being $1.1177 trillion. The move comes as Japan, faced with depreciation pressure on the yen, has been reducing the holdings of dollar-denominated assets, including US treasury bonds, so as to provide "ammunition" to stabilize yen's exchange rate in the foreign exchange market.

According to observers, how countries will adjust their holdings of US treasury bonds this year hinges on the prospect of US economy.

The risks in the US economy and its financial markets have been building up, triggering great concerns among global investors on dollar-denominated assets. The weaker-than-expected US labor market data in July also added to investors' anxiety.

JPMorgan Chase CEO Jamie Dimon said last week that he still believes that the odds of a "soft landing" for the US economy are about 35-40 percent, making a recession the most likely scenario in his mind, CNBC reported.

Global Times

 

[k1976]

China increases holdings of US treasury bonds to $780.2 billion in June, a ‘normal market move’ amid forex reserves diversification push

https://www.globaltimes.cn/page/202...gs of US treasury,of the Treasury on Thursday.


By Global TimesPublished: Aug 16, 2024 01:36 PM

Photo shows US dollar banknotes in Washington, DC, the United States. Photo:Xinhua


China's holdings of US treasury bonds reached $780.2 billion in June, a gain of $11.9 billion from a month earlier, marking the second time this year that China has increased the holding since first addition in April, according to data released by the US Department of the Treasury on Thursday. It was the largest increase in holdings so far this year.

China remained the second largest holder of US government debt in June. In May, China reduced its holdings of US treasury bonds by $2.4 billion, the fourth time in the year that it trimmed the holdings. China's total holdings of US Treasury bonds have been below $1 trillion since April 2022.

Dong Shaopeng, a senior research fellow at the Chongyang Institute for Financial Studies at the Renmin University of China, told the Global Times on Friday that China's holding increase is a "normal market move" based on multiple considerations, including a potential interest rate cut by the US as well as recent changes in the yields of US treasuries.

 

[k1976]

Fed Cuts May Send $1 Trillion FX ‘Avalanche’ to China, Jen Says​

• Firms may convert foreign-exchange into yuan as Fed cuts
• Such a move may lead to a 10% advance in the yuan: Stephen Jen

By Ruth Carson and Anchalee Worrachate
August 27, 2024 at 7:30 AM GMT+8
Save

Chinese companies may be enticed to sell a $1 trillion pile of dollar-denominated assets as the US cuts interest rates, a move which could strengthen the yuan by up to 10%, according to Stephen Jen.

The chief executive of Eurizon SLJ Capital said currency is now the biggest risk that’s not priced in properly across markets — and the yuan may play an outsized role.
Have a confidential tip for our reporters?

 

[Willamshakespear]

Ultimately, it is about TRUST & CONFIDENCE in a mere piece of paper called the dollar, regardless of whatever national denomination it derives from...

China may had sold its stock of US paper denominations, but ULTIMATELY, what is confidence lays, in its ability for sane Humanity to BUY such precious stocks. Such did not wavered, & in a FREE market like US that adopts, MANY of Humanity WISH China would sell more...

Also, Aunty Yellen would have a bigger headache, as such purchases by Humanity would come with a cost - bigger saving interests to pay out to investors, & fortunately, those treasury notes bought by China was years ago would carry smaller interest rates than today, to be paid out.

With the meagre ROI ( returns on investments) with China' s action, would it solve China's economic growth?

That is yet to be seen as it's unregulated CCP derived policies upon its own national banking systems which saw hard earned saver deposits seized or corruptly used for itself or CCP officials run away with such funds, or CCP State run companies presuming money drops from the skies & thus frivolous spending with even such funds from the govt SIDELINING into the corrupt officials wallets...

 

[k1976]

Ultimately, it is about TRUST & CONFIDENCE in a mere piece of paper called the dollar, regardless of whatever national denomination it derives from...

China may had sold its stock of US paper denominations, but ULTIMATELY, what is confidence lays, in its ability for sane Humanity to BUY such precious stocks. Such did not wavered, & in a FREE market like US that adopts, MANY of Humanity WISH China would sell more...

Also, Aunty Yellen would have a bigger headache, as such purchases by Humanity would come with a cost - bigger saving interests to pay out to investors, & fortunately, those treasury notes bought by China was years ago would carry smaller interest rates than today, to be paid out.

With the meagre ROI ( returns on investments) with China' s action, would it solve China's economic growth?

That is yet to be seen as it's unregulated CCP derived policies upon its own national banking systems which saw hard earned saver deposits seized or corruptly used for itself or CCP officials run away with such funds, or CCP State run companies presuming money drops from the skies & thus frivolous spending with even such funds from the govt SIDELINING into the corrupt officials wallets...

Actcheerie...US , ECB and Nippon is already discussing Post USD era in a Multi Polar world. There are a number of changes that will be implementing across the world eg Digital Currencies etc

 

[Willamshakespear]

Actcheerie...US , ECB and Nippon is already discussing Post USD era in a Multi Polar world. There are a number of changes that will be implementing across the world eg Digital Currencies etc

That's assumed as there is no public announcement yet, but may NONE be FOOLED that fraudulent cryptocurrency or EFT is the way of financial future.

Within our World, ultimately one's life savings or investments lay in TRUSTED financial entities such as US Treasury bonds, Gold, blue chip stocks, etc.

Even should Humanity goes digital, it will STILL be trusted financial entities as those mentioned, as with lightning speed, a mere foreign currency can be converted into trusted foreign financial instruments for better ROI....

Also, as mentioned before, Aunty Yellen would have a headache with INTERESTS that comes with the heavy purchase of trusted US financial instruments. Thus a delicate balance would be needed, to starve off inflation & over exuberances from the naive, & yet to keep the US economy flowing to save lives & economy, not just in USA, but Worldwide whom had trusted democratic USA & its institutions....

 

[k1976]

That's assumed as there is no public announcement yet, but may NONE be FOOLED that fraudulent cryptocurrency or EFT is the way of financial future.

Within our World, ultimately one's life savings or investments lay in TRUSTED financial entities such as US Treasury bonds, Gold, blue chip stocks, etc.

Even should Humanity goes digital, it will STILL be trusted financial entities as those mentioned, as with lightning speed, a mere foreign currency can be converted into trusted foreign financial instruments for better ROI....

Also, as mentioned before, Aunty Yellen would have a headache with INTERESTS that comes with the heavy purchase of trusted US financial instruments. Thus a delicate balance would be needed, to starve off inflation & over exuberances from the naive, & yet to keep the US economy flowing to save lives & economy, not just in USA, but Worldwide whom had trusted democratic USA & its institutions....

LIttle did Peepur realise...USD is partially digitalised with SWIFT, whileTiongkok is pushing Digital Yuan.

 

[k1976]

That's assumed as there is no public announcement yet, but may NONE be FOOLED that fraudulent cryptocurrency or EFT is the way of financial future.

Within our World, ultimately one's life savings or investments lay in TRUSTED financial entities such as US Treasury bonds, Gold, blue chip stocks, etc.

Even should Humanity goes digital, it will STILL be trusted financial entities as those mentioned, as with lightning speed, a mere foreign currency can be converted into trusted foreign financial instruments for better ROI....

Also, as mentioned before, Aunty Yellen would have a headache with INTERESTS that comes with the heavy purchase of trusted US financial instruments. Thus a delicate balance would be needed, to starve off inflation & over exuberances from the naive, & yet to keep the US economy flowing to save lives & economy, not just in USA, but Worldwide whom had trusted democratic USA & its institutions....

Digitalization of Money buy time for the BiG Game to deflate peacefully and systematically...so less violence or unexpected events can be minimize

 

[JurongEast]

I buy more Russia Ruble

 

[k1976]

I buy more Russia Ruble

Buy Yuan