Posted on 08/18/2009 1:03:48 AM PDT by bruinbirdman
China reduced its holdings of US Treasury debt in June by the biggest margin in nearly nine years, according to a US Treasury Department report issued on Monday.
China cut its net holdings by 3.1 percent to $776.4 billion in June from $801.5 billion in May, the report says. This is also the first large-scale reduction of US Treasury debt by China so far this year.
However, its June holdings were still larger than April's $763.5 billion and $767.9 billion in March, according to the statistics of the Treasury Department.
Reuters data show the drop in China's Treasury holdings in June was the biggest percentage reduction since a 4.2 percent cut in October 2000.
On the other hand, Japan, the second-largest holder of US Treasury securities, increased its holdings to $711.8 billion in June from $677.2 billion in May.
The United Kingdom, the third largest holder, also increased its holdings to $214 billion in June from $163.8 billion, a surge of 30.6 percent.
ChiComs dump $25B. Brits and Japs add $85B.
Which are we worried about?
yitbos
My what a twisted web we weave. China and Japan can’t bail out because they need a strong Dollar for exports to remain competitive. Drastic devaluation would cripple them economically. The UK, I don’t know. I’d assume they are headed for devaluation as well. House of cards.
The Japs and Brits cannot sustain the effort.
yitbos
Japan has a history of printing money to manipulate valuations.
I was watching that weekly Finance show on FNC on Saturday morning a couple weeks ago and one of the recommendations was a mutual fund which shorts the Chinese market. It was up about 70% YTD. Wish I had written down the ticker symbol. Not that I’d invest in it, but would like to have done some research.
And they have a history of paying the consequences for doing that too.
Interesting point. The pound is buying 1.6429 US DOLLAR.
yitbos
Yes they do. With the US printing up Dollars at this rate they have little choice though. Looks like massive worldwide CPI increases. Devaluing the debt and/or maintaining relative monetary stability through currency dilution. A house of cards.
The Pound has been relatively strong vs the Dollar for quite sometime. Some of the higher up money manipulators might see that trend reversing. Not a good sign for the UK.
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