Article

2011-06-04 Economy

China dumps 97 percent of short-term T bills

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Posted by Steve White 2011-06-04 00:00|| || Front Page|| [3 views ] Top

#1 Racist Chinese punishing the first non African state to elect a Black to highest office?

Posted by g(r)omgoru 2011-06-04 06:41|| 2011-06-04 06:41|| Front Page Top

#2 Half-black. Now if Tiger Woods was president ...

Posted by Bobby 2011-06-04 07:13|| 2011-06-04 07:13|| Front Page Top

#3 The long-threatened move away from the US dollar and Treasuries has begun in earnest. Lots of heads are firmly buried in sand ... or elsewhere ... to avoid acknowledging this.

Posted by lotp 2011-06-04 07:31|| 2011-06-04 07:31|| Front Page Top

#4 They pull a shell game, in which the Treasury redeems the T-bills with "newly printed money", then puts them in a new issue which is sold to the FED.

Posted by Anonymoose 2011-06-04 09:26|| 2011-06-04 09:26|| Front Page Top

#5 So China is redeeming the bonds for (devalued) cash dollars? And what are they buying with those dollars? Greek debt? (More likely US & global stocks - SOMETHING is supporting their prices, and it isn't earnings or anticipated earnings.)

Posted by Glenmore 2011-06-04 12:50|| 2011-06-04 12:50|| Front Page Top

#6 And what are they buying with those dollars?

Us. And our energy reserves.

Posted by Chavinter Hupavirong3890 2011-06-04 14:27|| 2011-06-04 14:27|| Front Page Top

#7 China has been buying up US oil fields.

They bought up 600,000 acres of drilling rights in the Eagle Ford formation last year. To get that oil, the Chinese are going to need to use "fracking" (hydraulic fracturing) of the shale. I expect EPA opposition to fracking will now end.

Posted by crosspatch 2011-06-04 15:33|| 2011-06-04 15:33|| Front Page Top

#8 Zero Hedge debunks the story
On "China Dumps US Bonds" Attempts At Clickbaiting

Posted by tipper 2011-06-04 19:00|| 2011-06-04 19:00|| Front Page Top

#9 If China sold their bills, they think rates will go up. Makes sense.

The players on that last zerohedge chart account for only half of the US public debt. Who holds the rest? Retirees via funds?

So China holds 12% of the US public debt - not exactly a death grip. OTOH, they might be more active in the market than that silent half.

Posted by KBK 2011-06-04 20:11|| 2011-06-04 20:11|| Front Page Top

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