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China, Japan Boost U.S. Bond Buying to Record Highs
The Wall Street Journal ^ | Jan 16, 2014 | Min Zeng, Eric Morath

Posted on 01/16/2014 10:06:13 AM PST by 1rudeboy

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1 posted on 01/16/2014 10:06:13 AM PST by 1rudeboy
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To: 1rudeboy

Recall ~ 20 years ago POTUS’s including GHWB and Clinton were terrified that interest rates would jump up if they ran up too much debt. But no more because of stuff like this.

This could also indicate that those countries see a crash coming.


2 posted on 01/16/2014 10:09:30 AM PST by sickoflibs (Obama : 'If you like your Doctor you can keep him, PERIOD! Don't believe the GOPs warnings')
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To: 1rudeboy

In November the Chicoms said they would not be net buyers anymore. They lied.

They are the other half of this codependent debt relationship.


3 posted on 01/16/2014 10:11:07 AM PST by NeoCaveman (DC, it's Versailles on the Potomac but without the food and culture)
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To: sickoflibs
I had a thought that China and Japan were doing it to make us crash, but then I wondered if there are more efficient and less expensive ways to do it, if that is their plan.
4 posted on 01/16/2014 10:11:44 AM PST by 1rudeboy
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To: 1rudeboy

really strange if the ChiComs are continuing to buy these bonds...
their deputy minister has made several highly pointed (and most uncharacteristic, therefore deliberate) critical statements about the poor quality of these investments and how China loses value and is thus subsidizing the American government’s reckless spending binges, etc., and ... that China should pare back its existing portfolio of such holdings.

they are very unhappy, they obviously do lose a lot of value buying paper that pays 2 or 3 percent but depreciates in real purchasing power at maybe 6 to 10 percent, per year.

China obviously has many other places it can invest its surplus dineros, too......

——?


5 posted on 01/16/2014 10:23:03 AM PST by faithhopecharity (C)
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To: 1rudeboy

This has to be orchestrated by the NWO cabal. I guess they need more time to get their ducks in a row before green-lighting the collapse.


6 posted on 01/16/2014 10:23:26 AM PST by MichaelCorleone (Jesus Christ is not a religion. He's the Truth.)
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To: NeoCaveman
In November the Chicoms said they would not be net buyers anymore. They lied.

The Chicoms can say what they want but as long as they want to keep the Yuan (Renminbi) undervalued relative to the dollar they must buy US dollars, i.e., US Treasuries. If they did what they preached the Yuan will go up in value relative to the $ making Chinese exports more expensive wrecking their export oriented economy.

7 posted on 01/16/2014 10:24:26 AM PST by C19fan
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To: MichaelCorleone

And, you are correct. A collapse must be evident because it makes no economic sense to purchase more bonds of a nation already in massive debt...unless


8 posted on 01/16/2014 10:30:21 AM PST by SeminoleCounty (Amnesty And Not Ending ObamaCare Will Kill GOP In 2014)
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To: SeminoleCounty

When the collapse lever is pulled by China and civil unrest and mass chaos ensues within the United States, after the smoke clears, China gets first dibs on intervening with their troops, then planting their flag on our soil.


9 posted on 01/16/2014 11:29:22 AM PST by CivilWarBrewing
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To: faithhopecharity

The Chinese and Japanese are embroiled in their dispute over some rocks in the China Sea. So they both buy a lot of U.S. Bonds. Seems like one side is trying to buy our support, and the other trying to buy us off.


10 posted on 01/16/2014 1:27:56 PM PST by henkster (Communists never negotiate.)
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To: henkster

I guess they figure those rocks have gas and oil under them


11 posted on 01/16/2014 1:30:12 PM PST by faithhopecharity (C)
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To: NeoCaveman

They are the other half of this codependent debt relationship.


We got their crap merchandise and they got our crap dollars.

What else are they going to do with those dollars except buy bonds which are just another form of those dollars.


12 posted on 01/16/2014 1:51:57 PM PST by PeterPrinciple
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To: faithhopecharity

It’s the same the world over - the elites keep their place in line via political power that let’s them spend our money, screw up our economy, and profit from it.

The Chinese elites look around and realize that they have more in common with the American crony capitalists than they do with their own people.


13 posted on 01/16/2014 2:18:11 PM PST by 1010RD (First, Do No Harm)
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To: 1010RD

well, those Communist China “elites” do seem to feel some sort of connection with their American conterparts. Tens of thousands of those elites from Communist China are buying American houses (in the most expensive neighborhoods, the high prices largely the result of these mostly all-cash ChiCom buyers, ironically )....

of course, the rest of the housing market is (for the most part) still badly depressed (as so many Americans are losing their jobs.... and most people still employed cannot possibly afford ....)


14 posted on 01/16/2014 2:24:06 PM PST by faithhopecharity (C)
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To: henkster

“The Chinese and Japanese are embroiled in their dispute over some rocks in the China Sea. So they both buy a lot of U.S. Bonds. Seems like one side is trying to buy our support, and the other trying to buy us off.”

What you have described is a continuing Viagra type wet dream for US bond sellers.


15 posted on 01/16/2014 2:27:13 PM PST by Grampa Dave ( Obamacare is a Trinity of Lies! Obamaganda is failing 24/7/365! Obamaganda will fail 24/7/365!)
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To: Grampa Dave
What you have described is a continuing Viagra type wet dream for US bond sellers. That would be the government of the United States, too. And if I assumed the 0bama regime knew what it was doing, I would say this was a plan to keep the pot stirred so we could sell our debt. But since I don't think our regime has a clue, I'll just chalk it up to serendipity.
16 posted on 01/16/2014 2:31:16 PM PST by henkster (Communists never negotiate.)
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To: 1rudeboy

China and Japan continue to buy our G bonds.

Germany and ? countries have stored their gold in America.

Whenever, there is a potentially severe international crisis or incident, money flows into our G bond ETFs and broad market Stock ETFs. This recent trend is probably why Gold’s prices have tanked in the past couple of year.

Why?

In spite of congress and Obozo, America is still probably the safest haven to park money at/in during a financial crisis.

That could change anytime, but where can the very rich park their large sums with the safety and mobility we have in America via our G Bonds and market type ETF’s like DVY/SPY?


17 posted on 01/16/2014 2:36:05 PM PST by Grampa Dave ( Obamacare is a Trinity of Lies! Obamaganda is failing 24/7/365! Obamaganda will fail 24/7/365!)
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To: faithhopecharity

BOL: “ Communist China “elites” do seem to feel some sort of connection with their American conterparts. Tens of thousands of those elites from Communist China are buying American houses (in the most expensive neighborhoods, the high prices largely the result of these mostly all-cash ChiCom buyers, ironically )....”

This past summer we refied our home to keep it in shape until they cart us out feet first at a much later date, we hope:).

During this process, I got to know the local bank leaders and got some interesting data.

Through September, ie, the first nine months of 2013, home prices in the snobby wino country shot up. Good homes that went up for sell often had bidding wars.

Through September of 2013, the largest number of cash buyers came from two areas:

Drumroll!

1. Surprisingly, #1 re cash buyers was Texas.

2. Number 2 and rapidly gaining were Asians from their home countries with China as the #1 Country in the second group.

The new Asian home owners seem to be evenly split between part timers here and new full timers in their new homes.

I don’t have the data on 2013’s last quarter, but it could well be the Asians/Chinese are the #1 buying group.


18 posted on 01/16/2014 2:49:14 PM PST by Grampa Dave ( Obamacare is a Trinity of Lies! Obamaganda is failing 24/7/365! Obamaganda will fail 24/7/365!)
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To: henkster

“What you have described is a continuing Viagra type wet dream for US bond sellers. That would be the government of the United States, too. And if I assumed the 0bama regime knew what it was doing, I would say this was a plan to keep the pot stirred so we could sell our debt. But since I don’t think our regime has a clue, I’ll just chalk it up to serendipity.

Serendipity, blind luck or good luck in spite of them selves is probably the best answer.

In spite of their bungling and attempts to run America, we still remain the safest place to live and store your money.

Of course the Obozos an Obozettes will try to take credit like the Clintoons did after they got reamed out by the Republicans after a critical election.


19 posted on 01/16/2014 2:53:15 PM PST by Grampa Dave ( Obamacare is a Trinity of Lies! Obamaganda is failing 24/7/365! Obamaganda will fail 24/7/365!)
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To: SeminoleCounty
A collapse must be evident because it makes no economic sense to purchase more bonds of a nation already in massive debt...unless

I don't understand how buying more debt from a nation about to collapse under too much debt is going to protect China from said collapse. An explanation would be helpful.

20 posted on 01/16/2014 3:39:26 PM PST by TwelveOfTwenty (See my home page for some of my answers to the left's talking points.)
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