Posted on 07/18/2015 5:43:55 AM PDT by Enlightened1
When the latest Treasury International Capital data was released yesterday, many were quick to conclude that not only had China's selling of US Treasury ceased, but that with the addition of $7 billion in US government paper, China's latest total holdings of $1270.3 billion were the highest since May of 2014. And if one was merely looking at the "China" line item in the major foreign holders table, that would be correct.
However, as we have shown before, when looking at China's Treasury holdings, one also has to add the "Belgian" Treasuries, which is where China had been anonymously engaging in a record buying spree via the local Euroclear, starting in late 2013, which however concluded with a bang in early 2015.
This is what we said last month:
"Belgium" is, or rather, was a front for China: either SAFE, CIC, or the PBOC itself. That Belgium's holdings, after soaring as high as $381 billion a year ago, have since tumbled as China has dumped the bulk of its Euroclear custody holdings, and that once this number is back to its historical level of around $170-$180 billion, "Belgium" will again be just Belgium. China's foreign reserves plunged concurrently and this was offset by a the biggest quarterly drop in Chinese pro-forma treasury holdings, which dropped by a record $72 billion in the month of March, and a record $113 billion for the quarter.
(Excerpt) Read more at zerohedge.com ...
I wonder how many acres of Federal land has been pledged as collateral to the Chinese for their purchasing of our debt.
If the ‘second set of books’ were ever opened up, I bet a good portion of the lower 48 are no longer ours. The natural resources in particular.
Come to think of it, China probably wants our coal, and is using the environwakos’ closing down of coal mines to preserve it for when the new owners take over.
We have some brilliant people on the Conservative side and here at Free Republic. Absolutely brilliant.
With one vote, each.
Brilliance is too much for the average American voter.
Information needs to be presented to the audience, the average American voter, in a way that he/she can understand.
We are on the right side and we have the best answers.
But all the average American voter hears from the Conservative side is, “Hmmmm....hmmmmm....hmmm.”
From the Liberal side they hear, “We’ll give you stuff.”
The problem is cultural and generational.
Example; when I was 16 (1958) I was laid of from a part time after school job. I was laying around in the house when my brother came home. He was 26 and recently divorced so back home until he found another apartment to live in, smaller than before.
He asked why I was home, I told him, he asked why I wasn’t looking for another job, I said I thought I would take it easy for a few weeks and collect unemployment. He said only bums took money for doing nothing and said if he came home tomorrow and found me in the house he would kick my ass.
I got another in about a week, no ass kicking.
You’ve got a good brother.
It was the same lessons I learned, hard work pays twice. Once for the money, the second time for the dignity.
Sorry, but in terms of bond sales by a sovereign nation, $143 billion isn’t that big of a deal.
Besides, there is no “collateral” involved. US Treasuries are open market securities available to all comers.
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