Russia and China Add to their U.S. Treasury Holdings in June - Japan Dumps $17.8 Billion

[Smaulgld]

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https://smaulgld.com/foreign-holdings-u-s-treasuries/

[Zippyjuan]

China will probably be adding more again to keep the value of their currency lower relative to the dollar. For a while there, they had been letting it rise a bit.

[devil21]

China will probably be adding more again to keep the value of their currency lower relative to the dollar. For a while there, they had been letting it rise a bit.

Perhaps you can help me to understand something Zippy. If the debt clock has been frozen for the last 160 days, how is the Treasury still issuing debt?

[Zippyjuan]

They can purchase existing Treasuries from dealers or others who own them. The Treasury also has to issue new Treasuries to replace matured ones which get redeemed. For example, a ten year note issued in 2005 would be due this year. When it is paid off, the Treasury issues a new ten year (though they could actually use a different maturity) to replace it.

[Warrior_of_Freedom]

Japan is pulling its money to build its army.

[Smaulgld]

China has swapped out some of its longer term treasuries for shorter term ones

[devil21]

They can purchase existing Treasuries from dealers or others who own them. The Treasury also has to issue new Treasuries to replace matured ones which get redeemed. For example, a ten year note issued in 2005 would be due this year. When it is paid off, the Treasury issues a new ten year (though they could actually use a different maturity) to replace it.

Thanks. Why do they have to issue new Treasuries to replace maturing ones? Why not just let them be redeemed and not replace them?

[TheCount]

Thanks. Why do they have to issue new Treasuries to replace maturing ones? Why not just let them be redeemed and not replace them?

That would cause an enormous increase in the money supply.

[Zippyjuan]

Thanks. Why do they have to issue new Treasuries to replace maturing ones? Why not just let them be redeemed and not replace them?

They can do that if the US debt decreased. But it hasn't. They borrowed money for the first Treasury to pay a bill they didn't have the money for. Now they still don't have that money and need to pay back the first borrower so they sell a new bond to raise money to pay off the original bond holder.

[Zippyjuan]

China has swapped out some of its longer term treasuries for shorter term ones

Link? Swapping Treasuries doesn't change the total amount of Treasuries they own, doesn't help the value of the Yuan and shorter term Treasuries offer lower interest rates so their return would be lower.

Of course if some of their Treasuries mature, they can decide to purchase ones with different maturities.

[devil21]

They can do that if the US debt decreased. But it hasn't. They borrowed money for the first Treasury to pay a bill they didn't have the money for. Now they still don't have that money and need to pay back the first borrower so they sell a new bond to raise money to pay off the original bond holder.

Isn't that called a ponzi scheme?

[TheCount]

Isn't that called a ponzi scheme?

It's called a bond.