Posted on 12/18/2011 6:00:51 AM PST by EBH
The Chinese government reduced its holdings of U.S. Treasury bonds to its lowest level on the year by $14.2 billion in October.
Analysts said the decline is mostly due to a stronger dollar, meaning the Chinese government has to spend more renmimbi (RMB) to acquire the same amount of bonds it purchased a month prior, when their currency was stronger. Moreover, media reports cited declining positions of Chinese banks for foreign exchange purchases, an indicator of capital outflows.
(Excerpt) Read more at news.yahoo.com ...
Good. Maybe if people buy less of our debt then we won’t spend and borrow so damn much.
CHOKE!! GASP!!
Did I read that right?
I haven't seen those two words together in a while.
Crap. There goes the old renmimbi. I remember the good old days when Dad would say, “A renmimbi for your thoughts” and “A renmimbi saved is a renmimbi earned.”
The ability of the left to control the ‘group think’ is incredible, no?
I do believe that is why the right/conservatives have such trouble getting a consistent push together. We have minds and don’t fall victim to ‘group think.’
Oh....sure.....the renmimbi is so great.....well, try to stuff a renmimbi under the thong-string of a stripper and see if you get thanked or slapped.
The Chinese know the dollar is a loser and so they are slowly getting rid of them.
The Chinese use the bond markets to prop up the value of the dollar and de-value their currency. Since the dollar is stronger as a result of the weakness of the Euro, they don’t have to spend as much. End of story.
We buy Chinese products in dollars. Because of our trade deficit with China, they must print more and more Chinese currency to mop up all of the dollars. All of that new Chinese currency drives inflation and currency devaluation in China.
We’re exporting our inflation to China.
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