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......
——?
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.
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.