China, treasuries, and gold

[Young Paleocon]

Hillary Clinton just went to China and encouraged the Chinese to continue buying our treasuries which they said they would. What's the opinion for gold this next week since that is the case. Will it fall as people become less worried about the dollar? Will rise because it just means that the Fed will continue printing? Insights please.

[hugolp]

I doubt it will have any impact. The chinese have been saying that for months now.

And btw, the chinese will say they are buying bonds if they are really buying them or if they are going to sell them. Because either way they want the bonds to be expensive.

Hugo

[Young Paleocon]

That would seem to be the rational aspect of it, but I'm just curious what traders will make of it.

[sdczen]

First, there is a reason Clinton went to China. They (China) has already cut way back on purchasing T-bills. So, just as Paulson did so many times, we now have Clinton begging China to continue to finance our debt. There is a caveat however.

This caveat is that the world is in the 2nd inning in an 9 inning game. Just released was the news that China will have a 139 Billion dollar budget deficit. As the economy gets worse, why would China spend their dwindling cash supply on T-bills that offer an interest rate lower than that of inflation?

In the end, China, Saudi Arabia, Japan etc... will all be forced to direct the money to their own economies. Who knows, maybe these countries will start buying up gold & gold mining companies with their T-bill money? Either way, it will be the end of the Dollar hegemony.

[Daleescondido]

Gold and silver are always under pressure for up moves in bad times.
There is so much gold and silver on paper and big moves to raise cash by nations or large banks can push prices around.
Physical gold and especially silver has been subject to premioms 30% silver and 11% gold if you want immediate posession.
Those who own it arent letting it go so the shortages exist.
Dont sweat the swings but I believe the speculators will try to drive it to 700 soon.
An effort to get small investors to cut loose of physical.
Even 800 and I am buying again.

[slacker921]

Mexico dumped dollars on the market and bought Pesos to prop up their own currency.. a sign of things to come. There are also a lot of private investors in China who are growing weary of US debt and ready to invest in their own country.

[LibertyBrews]

If we can't get anyone to buy treasuries more, what happens next?

[Daleescondido]

If we can't get anyone to buy treasuries more, what happens next?

Californai just sold their debt to themselves if what I heard on beck is true.

[sdczen]

If we can't get anyone to buy treasuries more, what happens next?

Then the Federal Reserve purchases the Treasury Bills. This is when the SHTF. It's nice to know that borrowing 1 Trillion Dollars and then having the Federal Reserve print the money to finance the debt.

Goes like this: Treasury issues T-bill......No buyers......Federal Reserve prints the money to fund/buy the T-bill......US places T-bill money into circulation.....Zimbabwe

[LibertyBrews]

[QUOTE=Daleescondido;1978577]Californai just sold their debt to themselves if what I heard on beck is true.[/QUOT

Hehe, what, are they retards?

[hugolp]

Hehe, what, are they retards?

No, crooks.

Hugo

[Daleescondido]

[QUOTE=LibertyBrews;1978592]

Californai just sold their debt to themselves if what I heard on beck is true.[/QUOT

Hehe, what, are they retards?

We are a liberal testing ground.
If it doesnt work here its ready for the rest of the nation.

[LibertyEagle]

What I'm concerned about is what Clinton offered them in exchange for them continuing to buy our debt. The Clintons have a long history of selling state secrets to their Communist brethren.

[constitutional]

They can always make it like WW2: Be a patriot by buying bonds.

[MrNick]

What I'm concerned about is what Clinton offered them in exchange for them continuing to buy our debt. The Clintons have a long history of selling state secrets to their Communist brethren.

I have long said they'll do anything to keep China funding us. Maybe sell secrets or possibly one day in the coming years go to war with an enemy of China. I hear Osama Bin Laden is hiding in Taiwan now. Were getting them oil from Iraq, whats next?