China Has Divested 97 Percent of Its Holdings in U.S. Treasury Bills..

China has dropped 97 percent of its holdings in U.S. Treasury bills, decreasing its ownership of the short-term U.S. government securities from a peak of $210.4 billion in May 2009 to $5.69 billion in March 2011, the most recent month reported by the U.S. Treasury.

Treasury bills are securities that mature in one year or less that are sold by the U.S. Treasury Department to fund the nation’s debt. Until October, the Chinese were generally making up for their decreasing holdings in Treasury bills by increasing their holdings of longer-term U.S. Treasury securities. Thus, until October, China’s overall holdings of U.S. debt continued to increase.

Since October, however, China has also started to divest from longer-term U.S. Treasury securities. Thus, as reported by the Treasury Department, China’s ownership of the U.S. national debt has decreased in each of the last five months on record, including November, December, January, February and March.

Source: www.cnsnews.com...


Obama math would tell you this is a positive sign...

reply to post by smartbuddy


Not a hard choice for me, Id rather Americans hold our debt than foreign countries.

IMO china is loosing hope in the U.S. But we can handle our own and so can they. My question is how long will china last. The U.S. will last forever

reply to post by DOUGH3914


I think you got it backwards my friend.

I think he's spot on.

Originally posted by DOUGH3914
IMO china is loosing hope in the U.S. But we can handle our own and so can they. My question is how long will china last. The U.S. will last forever

The US is approximately 300 years old, while China is approximately 3000 years old! I think they are winning that one.

Originally posted by DOUGH3914
IMO china is loosing hope in the U.S. But we can handle our own and so can they. My question is how long will china last. The U.S. will last forever

One of the oldest cultures vs. one of the newer...hmm...hmmm....how can you even be thinking this?

well...it finally happened...question is...what now?

The US dollar dropped from the open till noon, the low was about 73.70. Financial news gets priced in faster than you think its not like you can unload over 200 billion in bonds without someone noticing. Remember the counterfeit bonds smuggled into Italy by Asian train passenger story on ATS?

www.abovetopsecret.com...

Don't worry about China.......

The USA have HAARP to fix everything

reply to post by smartbuddy


This is bad, really bad. Just study the past and you would see. Japan did the same thing before WWII. This may mean war. Either the US or China will provoke. It may come as an attack from N Korea on S Korea (they met with China a couple of weeks ago) or an attack on Iran by Israel, either way, this means a seperationist policy among the two.

Stay Tuned

Doubt war will break out. In this day and age, its much cheaper and better to buy out a developed country. Much cheaper to bomb out a much less developed country.

I can't wait to see what this does to the value of the dollar!

Either the Fed prints it's way out of it, and deepens the hole, or we deal with the ramifications now....bet they print cash.

reply to post by sheepslayer247


Whats the bet China rumbles............the auroras will brighten their skies 10 mins before

This is nothing.

From Tyler Durden from Zerohedge :
In the comments

Because this is complete non-news. First of all, as we pointed out a long time ago, China's T-Bill holdings fluctuate based on prevailing short term rates. Second, Bills account for less than 1% of total China bill/bond/note holdings and thus their notional is completely irrelevant in the grand scheme of things. Third: TIC data is consistently wrong, and the bulk of China's marginal purchases (of both bonds and bills) occurs via the UK, and are only captured once a year with a 2 year lookback. In other words, only the June 2010 number is valid. Lastly, the linked article did the same error Bloomberg did by comparing apples and oranges, i.e., the post June 2010 and pre June 2010 time series.

Should we continue?

And yes, here is the chart we posted on this extremely irrelevant topic in February:

Originally posted by here4awhile
well...it finally happened...question is...what now?

It hasn't happened yet but it will happen in March, 2012 when all of the $1.7 trillion in short term debt comes due. They will either have to find buyers for it or default. Plain & simply, it's very doubtful China (the largest investor) will be interested in buying it and Japan (the 2nd largest investor) won't be able to because of their financial difficulties now from the EQ and tsunami.

Remember, China hasn't completely divested yet, they still own 1.1449 trillion in long term debt. It stinks now, I know, but just wait til next spring. The S WILL hit the fan.

reply to post by sheepslayer247


Havent you heard?

They are about to do "quantitative easing"......3.

More paper, less money.

our economy is crashing.

THANKS PTB!

and thank you obama and co. for speeding it up so well. Even bush didnt have this much arrogance!

Keep up with the news bro LOL!

reply to post by ArcAngel
Either of these are my biggest "realistic" fears for the near future...

reply to post by getreadyalready

I was referring to rank as far as what nations are on top.