What if China and Japan dump their US Treasuries?

asiatimes.com ^ | May 5 2022 | William Pesek

[elpadre]

What if????? Something to think about. What would be Washington’s reaction??? How do we get these politicians to quit this runaway spending??? What say ye???

[Vermont Lt]

China has been dumping Treasuries foe years.

[Wilderness Conservative]

What if the US voided the CUSIP numbers to those bonds before they could be sold?

[GaltMeister]

If countries like this start selling even a modest percentage of the treasuries they hold it will be huge for the US.

[V V Camp Enari 67-68]

It’s always been a run on American tax payers money after the tax season…from all the countries of the world. I read that this years tax hall is the largest ever, like over 4 trillion dollar’s. It’s as though a lot of countries and politicians want a piece of this huge pile of our tax paying dollars. just sayin’

[Brellium]

What if????? Something to think about. What would be Washington’s reaction??? How do we get these politicians to quit this runaway spending??? What say ye???

A whole lot of nothing, the Fed is in the process of winding down its balance sheet which includes 8 trillion dollars in treasures(?)

The Fed lets it happen, the Fed holds off on onloading its treasures, or the fed continues to unload.

[datura]

Nice fear porn, but in reality the US dollar is the strongest currency on the planet right now, and the cash flow out of Asia into treasury bonds has China very concerned. Foreign investment in China is down 64% YoY, which is huge.

The Fed’s QT has raised the returns on bonds to levels not seen in many years, and investors are buying bonds at record pace. Central banks have their own agendas, and both the RMB and Yen are crashing against the dollar right now.

Note metals have also dropped against the dollar.

[unclebankster]

Good Post. A reality based post.

👍👍👍👍

[Dr. Sivana]

If they dump the Treasuries, they would have to put the money somewhere else, likely with a lower yield. Ironically, the folks who they buy from might take that money and turn around and buy U.S. Trasuries!

[FreedomPoster]

We’re the least bad of all the major currencies, which is more than a little scary. I came to this realization 3-4 years ago from an article posted here on the subject.

[Tell It Right]

What if China actually made a payment on the $1.6 billion in treasuries owed to American investors that they haven’t paid a penny on in over half a century? (By the way, that’s about how much US debt China owes.)

[Tell It Right]

The #1 US debt holder is the Federal Reserve, though that's liable to change soon if the Fed keeps doing QT (tapering).

The #2 debt holder is the Social Insecurity system.

China owes about 8% of U.S. debt.

[SandwicheGuy]

I’m looking for the verified stamp and the like button... Nice post.

[SaveFerris]

(We’re the least bad of all the major currencies, which is more than a little scary)

That is indeed scary with nearly 200 trillion in U.S. debt and unfunded liabilities alone.

https://usdebtclock.org/index.html?taxpayer=

[Mariner]

If they dump their US treasuries nothing will happen.

Nobody will buy them.

Because they will never, ever be paid.

Never.

[Antoninus]

We’re the least bad of all the major currencies, which is more than a little scary. I came to this realization 3-4 years ago from an article posted here on the subject.

That has been my conclusion as well. Still trying to figure out where the best place to put money would be that keeps pace with inflation. Until recently, the answer was stocks. As of this moment....real estate in select markets. Otherwise, I'm not sure.

[FreedomPoster]

If you figure it out, let me know soonest.

[Elsie]

What if China and Japan dump their US Treasuries?

Uh...

They won't lose as much money than if they keep them?

[Elsie]

...it will be huge for the US.

Good or bad for us