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MOGal
Is China quietly dumping US Treasuries?

don't expect a quick sell off,... Now, there's a comfort... China won't sell them because "China would not have anyone to sell the securities to"

So instead of accumulating more Treasuries, China is plowing U.S. dollars into inflated U.S. stocks, agencies (tied to horrendous fundamentals in the U.S. housing market), junk bonds, and other garbage.

Why is it that foreigners always buy market tops (first Treasuries, now equities)? Regardless of the answer to that last question, there's always a buyer at the right price. That holds true for housing, Treasuries, and even CDOs.


There’s no denying that China has cut back on Treasury purchases. In fact, avoidance of U.S. Treasuries in now approaching a near mania everywhere, even as funding can easily be found for the junkiest of junk offerings (not related to housing). But is there any reason for China to do a wholesale dump? I personally doubt it.

selling investments (or treasuries) requires that you find a buyer willing to pay you money..

so in effect China would lose money if it sold treasuries, the dollar is worth less, the treasuries are worth less....

add in China's sub-prime losses,..and it will be hard to see who the bigger loser is US or China...
Chinese state lenders, including the Bank of China, are expected to announce losses from their exposure to the US subprime lending market,...

care to "prove me wrong",.. MoGal?
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