Exclusive: U.S. lets China bypass Wall Street for Treasury orders

Exclusive: U.S. lets China bypass Wall Street for Treasury orders

www.reuters.com

China can now bypass Wall Street when buying U.S. government debt and go straight to the U.S. Treasury, in what is the Treasury's first-ever direct relationship with a foreign government, according to documents viewed by Reuters.

The relationship means the People's Bank of China buys U.S. debt using a different method than any other central bank in the world.

(visit the link for the full news article)

This does not bode well for US little people here in this country.

What this means is now the Chinese Government/central bank can deal directly with each other by passing Congress and everyone else.

Since the creation of the Federal Reserve who issues those treasuries they had to go through Wall Street and now that last hurdle is gone.

China has over $1.17 trillion of Us debt and now a door has opened that will be this nations undoing.

They could have not done this on their own Government had to ok this because that is a rather telling sign now they can borrow more than ever.

This news really stinks for us and they could care less

www.reuters.com
(visit the link for the full news article)

reply to post by neo96



I don't understand, but this don't look good.

Anyone see Maurice?

I wonder to what extent the peoples bank of china is really the peoples bank of china. How many shares are in the public domain versus the private domain? since china is communist only on paper it could be another rothschild charade. the rothschilds own almost everything!

And the treasury orders seems to be an even more ridiculous concept. The treasury orders money from the federal reserve which is in their own words semi-private with government supervision. I always thought the government gets money only via taxation so if there were no taxes the government would have zero money to spend. they spin and spin and spin EVERYTHING to the point of lunacy.

Technically as far as I was aware the federal reserve lends money to federal reserve member banks at a prime rate and then the commercial bank adds its own interest to the customer. The government gets no cut from the action at all. The board of governors are nothing more than rumber stamp stooges who pass on information between our make believe government and the bankers.

reply to post by Stormdancer777


It's a ropa dope China gets to buy treasuries at rock bottom prices and then turn around and sell them at the market without Wall Street knowing the price paid.

Crony capitalism to put it another way.

reply to post by neo96


Also in article:

Another feature of the U.S.-China business relationship is discretion: The Treasury tried to keep its motivation for the (2009 )rule change under wraps, Reuters reported.

Documents dealing with China's new status as a direct bidder again demonstrate the Treasury's desire for secrecy -- in terms of Wall Street and its new direct bidding customer.

More transparency for yah, huh?

Reminds me of an article from infowars . . .

As The Elite Fences Itself In, Kissinger Announces Order Out Of Chaos
www.infowars.com...

“The United States has to be part of an international system that we create domestically”, he told The Harvard Crimson in the beginning of this month. When asked what the most important problems are facing American society today, Kissinger answered:

“Internationally, the problem is that there are upheavals going on in every part of the world, but these upheavals don’t follow the same basic causes, and so the United States has to be part of an international system that we create domestically.”

What the old man is saying here ties neatly into statements he made in the past concerning the concept of seizing crises and upheavals, the causes of which may differ from nation to nation, in order to bring about an international order- thereby following the elite’s golden rule that order is best brought about by chaos. Furthermore, he provides us with a glimpse of the underlying intent he and his fellow-bilderbergers have in mind, stating in so many words that civil unrest- be it economically, politically or socially motivated- must be seized upon in order to merge nations into the desired “international system.”

Compound that with the Chinese purchasing AMC
AMC Buyout Part of Chinese Takeover of Media
www.infowars.com...

Am I the only one seeing a pattern here?

Henry Paulson is joining the party to . . .
www.blackrockinstitutionalclientconference.com...

In February 2010, Paulson published his first book, On the Brink, detailing his experience at Treasury during the global financial crisis. In 2011, he founded and currently serves as Chairman of the Paulson Institute at the University of Chicago, which is dedicated to addressing issues of global scope with a special emphasis on engagements designed to strengthen the crucially important relationship between the United States and China.


argh!

Originally posted by neo96
reply to post by Stormdancer777

 

It's a ropa dope China gets to buy treasuries at rock bottom prices and then turn around and sell them at the market without Wall Street knowing the price paid.

Crony capitalism to put it another way.

Or maybe they want to help america crash one year earlier by covertly lending her money that she will never be able to pay back and the chineese could have the perfect excuse to invade america to reclaim what on paper belongs to them.

I mean if you can't start world war 3 with iran and israel attacking each other and everyone jumping aboard, then use imminent domain and russia would be all too glad to help an old ally like china. Remember both were communist at one point and now both are essentially capitalist.

reply to post by EarthCitizen07


One might think but one could also think that America is the cash cow that drives their economy so it would not be in China' own self interest to invade.

The smart move is just to milk us dry over the long term.

reply to post by FriedBabelBroccoli


Also, I remember hearing this last week--tied in as well I'm sure...

......Fed clears China's first US bank takeover

The United States opened its banking market to China's biggest bank ICBC, for the first time clearing a takeover of a US bank by a Chinese state-controlled company.

Just days after high-level US-China economic talks in Beijing, the Federal Reserve approved an application from Industrial and Commercial Bank of China to buy a majority stake in the US subsidiary of Bank of East Asia.

The transaction will make ICBC the first Chinese state-controlled bank to acquire retail bank branches in the United States.

[urlnews.yahoo.com...[/url]

Originally posted by neo96
reply to post by EarthCitizen07

 

One might think but one could also think that America is the cash cow that drives their economy so it would not be in China' own self interest to invade.

The smart move is just to milk us dry over the long term.

One can only hope that is what will happen. All I know is that the corporate elite are pulling the strings from so many directions it is almost mind boggling trying to keep up. I think sooner or later they want to depopulate earth according to the georgia guidestones and they should be stopped!

It is a crime in the 21st century to have private central banks issuing currency. It usurps the entire purpose of government in the first place. I know you are aware of this already because I remember you posting about woodrow wilson(democrat).

reply to post by EarthCitizen07


Yeah there is a double dose of stupidity and blame Wilson for creating it and Nixon for taking us off the gold standard.

reply to post by neo96


This is the cost of doing business with the Chinese. They want more return on their investment. They were buying our treasury bonds when nobody else wanted to touch them back in 2008-2009. Now they can get rock bottom prices without wall street getting a cut. More money leaving America. I bet Hillary made the deal when she was in China recently begging them to buy up more debt.

So if I understand the article right.....China can now buy U.S treasuries (debt), at below market cost without letting any governing or regulating authority know?

This caught my eye..

Instead, China is preserving the value of specific information about its bidding habits. By bidding directly, China prevents Wall Street banks from trying to exploit its huge presence in a given auction by driving up the price.

Source

If it's hiding its purchasing, then one could safely assume that China theoretically, could literally buy all of the U.S debt up and no one would be the wiser. Then they could call in the debt to completely destroy the economy or major political leverage. Either way IMO this just sealed the U.S fate.

reply to post by highfreq


You got it!

The only time anyone will know is when China sells it they can buy and hold as much as they want or as much as the federal reserve will sell them

Originally posted by neo96
reply to post by EarthCitizen07

 

Yeah there is a double dose of stupidity and blame Wilson for creating it and Nixon for taking us off the gold standard.

edit on 21-5-2012 by neo96 because: (no reason given)

Nah. I blame Woodrow Wilson 100%. The gold standard is meaningless cause there is not enough gold(or any precious metal) to cover all the currency in circulation. Fiat money by itself is not the problem. It is who owns the currency issued and who collects the prime rate.

If I were you I would not put too much faith in Ron Paul. Sure he is better than both Romney and Obama but still he is controlled opposition. If he were real opposition he would have been silenced a long time ago. If he becomes real oppositon during his presidency he could suffer the fate of JFK of the 60s. The ptb are evil war mongers.

Exclusive: U.S. lets China bypass Wall Street for Treasury orders?
It sounds like a fire sale to me. But what do I know?

Originally posted by neo96
reply to post by highfreq

 

You got it!

The only time anyone will know is when China sells it they can buy and hold as much as they want or as much as the federal reserve will sell them

Sorry, but if I were china the last country I would want to lend money to is the USA with already 16 trillion debt and not a hail mary's chance of ever being able to repay it back. One would have a better chance playing the pick 6 lottery to win a few million by random chance than rellying on the government to collect all the debt owed.

I seriously smell ulterior motives. Like what I said before. Why not go borrow from germany, uk, canada, some scandanavian country, etc? those countries have a much better track record imo.

Originally posted by neo96




What this means is now the Chinese Government/central bank can deal directly with each other by passing Congress and everyone else.

Bypassing Congress? No foreign central banks need to go through Congress to buy treasuries.

Originally posted by EarthCitizen07


Or maybe they want to help america crash one year earlier by covertly lending her money that she will never be able to pay back and the chineese could have the perfect excuse to invade america to reclaim what on paper belongs to them.

China has no interest in the dollar, or the US crashing. If it does, then the money they are owed turns to dust.

If you loan someone money, do you want them to go bankrupt?

Also, since It's bound to come up, China does not own the majority of US debt. The US owns the majority of US debt.