So private investors all around the world bought $1 tr of T-bills, and relative share of Chinese government has shrunk. However, how long does it last? This T-bill run is a bubble itself. When it burst, would China bail out along with others or more or less maintain its holdings and have greater say on U.S. affairs?
To: TigerLikesRooster; PAR35; bamahead; AndyJackson; Thane_Banquo; nicksaunt; MadLibDisease; ...
2 posted on
01/25/2009 3:06:52 AM PST by
TigerLikesRooster
(kim jong-il, chia head, ppogri, In Grim Reaper we trust)
To: TigerLikesRooster
Yes, I feel
much better, knowing that we are over-indebting ourselves not only to the Chinese, but also to, e.g., the Russians and the Saudis.
Regards,
To: TigerLikesRooster
But these bonds are backed by the full faith and credit of the United States Government.......?? Naahhh! Think I would pass.
To: TigerLikesRooster
When you pull out billions from the equities markets, the only safe and secure place to park that money is in US Treasuries.
Once the equities markets bottom and start a turnaround, the market will be flooded with T-Bills as investors liquidate them for cash to put back into equities.
At that point, the only way to pay off those T-Bills is to sell more T-Bills, but there won’t be any buyers, so interest rates will go through the roof.
Look for massive inflation beginning around the end of the Mayan Calendar...
7 posted on
01/25/2009 5:46:17 AM PST by
Yo-Yo
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