China's "Dumping Treasuries" and Singing Songs & a Russia Hoax Game Changer!

[Smaulgld]

[oyarde]

Buying treasuries is a fools game.

[Zippyjuan]

China is hardly "dumping" US treasuries. One year ago, they held $1.1877 trillion worth. As of the latest figures, they hold $1.1205 trillion worth- a change of $67.2 billion.

[oyarde]

China is hardly "dumping" US treasuries. One year ago, they held $1.1877 trillion worth. As of the latest figures, they hold $1.1205 trillion worth- a change of $67.2 billion.

Percentage wise , what is that about 9 1/2 percent ? That still seems significant . I would get rid of all of it . I can just think of so many other things to do with it .

[Zippyjuan]

Percentage wise , what is that about 9 1/2 percent ? That still seems significant . I would get rid of all of it . I can just think of so many other things to do with it .

About five percent reduction in holdings. That is not exactly "dumping" which is selling tons. And worth keeping in mind, "China holdings" is the total of all US Treasuries. held in that country- not just by the Chinese government. Would you (or anyone) claim the Fed is "dumping" their US Treasury holdings? In the past year, they reduced their holdings from $2.4 trillion to $2.1 trillion (300 billion or 12.5%). They haven't sold a single one. But what they have done (and probably people in China too) is to not buy a replacement for every one they have which matures.

[oyarde]

About five percent reduction in holdings. That is not exactly "dumping" which is selling tons. And worth keeping in mind, "China holdings" is the total of all US Treasuries. held in that country- not just by the Chinese government. Would you (or anyone) claim the Fed is "dumping" their US Treasury holdings? In the past year, they reduced their holdings from $2.4 trillion to $2.1 trillion (300 billion or 12.5%). They haven't sold a single one. But what they have done (and probably people in China too) is to not buy a replacement for every one they have which matures.

I really would not be buying any replacements , especially if I am china .

[Zippyjuan]

I really would not be buying any replacements , especially if I am china .

If they did start selling, it would cause the value of their currency to go up (converting the Treasury dollars to yuan). That makes their exports more expensive and hurts their businesses on top of Trump's tariffs. That is why they don't. They bought the Treasuries with dollars we spent on good from them to avoid converting to yuan.

[devil21]

If they did start selling, it would cause the value of their currency to go up (converting the Treasury dollars to yuan). That makes their exports more expensive and hurts their businesses on top of Trump's tariffs. That is why they don't. They bought the Treasuries with dollars we spent on good from them to avoid converting to yuan.

Or they could just leave the dollars in dollar denominated accounts and use them to buy up things like American real estate, companies, stocks and gold. Seems like that's what they've been doing any way. They're not required to convert the dollars back into yuan.

Some months ago, someone claiming to be an insider stated on ZH that what the Chinese are mainly doing is using their Treasury holdings as collateral for dollar cash loans, using those dollars to buy up stuff then defaulting and letting the banks take the Treasuries collateral. That way it's a liquidation of Ts but without doing it in the open markets. Makes sense.