China、Japan Sell $400 Billion of US Debt

BWC News ^ | January 25, 2023 | BWC News

[House Atreides]

Data show that in the first 10 months of 2022, European countries have reduced their holdings of U.S. debt by a total of $126.34 billion, while Asia has reduced its holdings by a whopping $521.38 billion.

China has sold a total of $171.2 billion in U.S. debt, while Japan has sold a total of $240 million in U.S. debt.

As of November 2022, the largest holders of U.S. debt are still Japan and China. Among them, Japan holds $1.0822 trillion in U.S. Treasuries, selling $14.6 billion in August alone; China has reduced its holdings of U.S. Treasuries for three consecutive months, with a cumulative selling scale of $15.7 billion, and reduced its holdings by $7.8 billion to $87 billion in the same month, with a new low position since June 2010.

[Excerpt]

[House Atreides]

Just another part of the Globalists’ ORCHESTRATED collapse of the US Dollar as THE world’s reserve currency. When that project is completed and in full fruition, the actual REAL costs of financing our huge debt and ongoing deficits will be astronomical. We will no longer be able to EXPORT MUCH OF OUR INFLATION.

But, not to worry, Zelensky will still be wealthy.

[PeterPrinciple]

Having not viewed this, the more important observation is what are they buying?

[butlerweave]

What fool bought that ? LOL

[EEGator]

Servicing their debt.

[Repeal The 17th]

Who/What is BWC News?

If China and Japan are selling U.S. debt, who is buying it?

[alexander_busek]

European countries have reduced their holdings of U.S. debt by a total of $126.34 billion, while Asia has reduced its holdings by a whopping $521.38 billion. China has sold a total of $171.2 billion in U.S. debt, while Japan has sold a total of $240 million in U.S. debt.

Okay, I'll bite: WHO'S BUYING?

In every transaction, there has got to be both a party and a counterparty.

So if Europe, China, and Japan have been selling U.S. debt, I'd like to know who has been buying.

Regards,

[agere_contra]

My guess?

Belgium or some other small country, acting as an agent of the US

[PeterPrinciple]

If China and Japan are selling U.S. debt, who is buying it?

---

In October, only Belgium and France among the top 10 holders of US debt increased their holdings, while all eight other economies reduced them.

https://www.globaltimes.cn/page/202212/1282025.shtml

Place your bets folks

[silverleaf]

You are

[Myrddin]

Ordinarily, if you buy a US Savings bond and hold to maturity, you expect the "US" to exchange it for the number of US Dollars represented by the mature value. You can exchange those US Dollars for goods and services. What happens when the value of the US Dollars represented by the mature bond is nothing. Nobody wants to exchange the US Dollars for goods or services? Does the party holding the US debt instrument (bond) demand repayment in tangible assets? Land? Gold? Food?

Having raised the question, the US has taken delivery of Saudi oil in exchange for US Treasury bonds for a very long time. The Saudis may well demand repayment in tangible assets (like the oil they gave for the bond) as repayment. What will the US government have to exchange for those treasury bonds held by foreign parties?

[rb22982]

The dollar increased massively in the 10 months indicated in this "article" - Yes, a lot of foreign countries had to sell some US assets to defend their currency, not the way you are thinking. Also worth noting, China and Japan are small % owners now compared to 20+ years ago, its just a fraction of our 30T in debt.

[agere_contra]

“If you don’t know who’s buying US debt, you’re the one buying US debt”

[Four of Six]

“What fool bought that?”

I was wondering about that, too.

[Nervous Tick]

You raise two good questions — I, too would like to know:

** Where did China and Japan spend or reinvest the proceeds?
** Who bought the half-trillion in US debt from China and Japan?

If “we” bought back our own debt, it should show up on the Fed’s balance sheet, I would guess.

[Toddsterpatriot]

If “we” bought back our own debt, it should show up on the Fed's balance sheet, I would guess.

Since June 2022, the Fed has reduced the Treasuries on their balance sheet by $320 billion.

T-Bills (12 months and less) at +4% are a lot more attractive than they were at less than 0.5% last March.

[Nervous Tick]

thx

[rb22982]

Having not viewed this, the more important observation is what are they buying?
In the case of Japan, they bought Yen back to defend their currency as it sank 30%+ against the dollar in 2022. Unlike the tone of this article, 2022 was an unbelievable year for the dollar with only 3-4 countries having their currencies stay flat or go up vs the dollar with >200 dropping on average 15% to the dollar. Foreign countries sold their winners (ie US assets) to help fund issues back home, not because they necessarily wanted to sell them because they think they are bad investments

Who bought the half-trillion in US debt from China and Japan?
Combination of retail investors (people like you and me, institutional investors (vanguard, blackrock, Fidelity, etc) and large banks like JP Morgan. Keep in mind this is a very small amount of $ that's out there. The US Treasury market is over $30T, the total US debt market is over $60T and the US Equity market is around $50T. $0.5T is a small fraction of the pie.