China now biggest holder of US securities

[JimH52]

China now biggest foreign owner of U.S. Treasuries - BloggingStocks

 

[gonegolfin]

China now biggest foreign owner of U.S. Treasuries - BloggingStocks

This is principally due to the Chinese having sold a tremendous amount of their US GSE Agency debt and mortgage backed security holdings and swapping for treasuries.

Additionally, Chinese holdings of long term treasuries have actually declined since November. The increase in overall treasury holdings is due to significant increases in Chinese buying of short term treasuries. This is not a long term stable form of financing for the US.

It is clear that domestic sources will be needed to fund the massive upcoming US Treasury issuances. I believe that when the time is right, the Fed will encourage the banks (with their massive reserves) to invest in treasuries to help support the market. As the yield curve widens (as it has been) and the Fed ceases to pay interest on excess reserves, this will provide a bigger push for the banks to invest in treasuries. However, bank reserves have been on the decline in recent weeks, especially last week (a huge drop in reserves on deposit with the Fed - more than $130 billion). It seems that some of the Central Bank swaps are unwinding, some commercial paper has been maturing and going unreplaced, and outstanding repurchase agreements are now $0.

Brian

 

[Munin]

This is kind of a strange situation: they are buying our debt with the money we paid for their importing their goods. And because of them buying our debt, the $ stays high and we can keep buying their goods. And they can keep buying our debt, until one day they might own US.

Lucky for us that the bush government that is responsible for this is gone, and the Obama administration seems more aware of this dangerous situation. Let s not forget that China is still a communist governed country, despite the layer of capitalist paint on it (the communist government controls the Chinese economy very firmly).

 

[dilloduck]

This is kind of a strange situation: they are buying our debt with the money we paid for their importing their goods. And because of them buying our debt, the $ stays high and we can keep buying their goods. And they can keep buying our debt, until one day they might own US.

Lucky for us that the bush government that is responsible for this is gone, and the Obama administration seems more aware of this dangerous situation. Let s not forget that China is still a communist governed country, despite the layer of capitalist paint on it (the communist government controls the Chinese economy very firmly).

What is Obama going to do that will make our relationshiop with China any diferent ?

 

[editec]

Munin, it not JUST the Bush Administrations fault that foreign governments now own so much of our debts.

I mean he's got his share of the responsibility, but then too so does Clinton, Bush I, Reagan, Carter, Ford, NiXXon, Johnson, Kennedy, Eisenhower, Truman and FDR.

Our trade policies punish industries on American soil and reward industries on foreign shores.

Hence the imbalance of trade which ends up as debts owed to foreign nations.

 

[Munin]

This is kind of a strange situation: they are buying our debt with the money we paid for their importing their goods. And because of them buying our debt, the $ stays high and we can keep buying their goods. And they can keep buying our debt, until one day they might own US.

Lucky for us that the bush government that is responsible for this is gone, and the Obama administration seems more aware of this dangerous situation. Let s not forget that China is still a communist governed country, despite the layer of capitalist paint on it (the communist government controls the Chinese economy very firmly).

What is Obama going to do that will make our relationshiop with China any diferent ?

Because his picks for the government: Geithner Hints at Harder Line on China Trade: http://www.nytimes.com/2009/01/23/business/worldbusiness/23treasury.html?partner=rss

 

[Munin]

Munin, it not JUST the Bush Administrations fault that foreign governments now own so much of our debts.

I mean he's got his share of the responsibility, but then too so does Clinton, Bush I, Reagan, Carter, Ford, NiXXon, Johnson, Kennedy, Eisenhower, Truman and FDR.

Our trade policies punish industries on American soil and reward industries on foreign shores.

Hence the imbalance of trade which ends up as debts owed to foreign nations.

Yes, but during the governing of those presidents the situation was "under control".

FTD - Statistics - Country Data - U.S. Trade Balance with China

 

[dilloduck]

Munin, it not JUST the Bush Administrations fault that foreign governments now own so much of our debts.

I mean he's got his share of the responsibility, but then too so does Clinton, Bush I, Reagan, Carter, Ford, NiXXon, Johnson, Kennedy, Eisenhower, Truman and FDR.

Our trade policies punish industries on American soil and reward industries on foreign shores.

Hence the imbalance of trade which ends up as debts owed to foreign nations.

Yes, but during the governing of those presidents the situation was "under control".

FTD - Statistics - Country Data - U.S. Trade Balance with China

As is the beginning of a forest fire.

 

[Munin]

Munin, it not JUST the Bush Administrations fault that foreign governments now own so much of our debts.

I mean he's got his share of the responsibility, but then too so does Clinton, Bush I, Reagan, Carter, Ford, NiXXon, Johnson, Kennedy, Eisenhower, Truman and FDR.

Our trade policies punish industries on American soil and reward industries on foreign shores.

Hence the imbalance of trade which ends up as debts owed to foreign nations.

Yes, but during the governing of those presidents the situation was "under control".

FTD - Statistics - Country Data - U.S. Trade Balance with China

As is the beginning of a forest fire.

There is a big difference between a campfire and the beginning of forest fire: people sitting at the campfire are the ones that should prevent it from getting into a forest fire if they loose control over it. That is what the Bush government failed to do. Forest fires are not caused by people that start a fire, they are caused by people who loose control over their fire.

In my opinion it was a campfire at first (under control), the Bush government failed to secure it and it turned into a forest fire. ( the trade balance got from - 70 billion to - 250 billion dollars )

 

[JimH52]

It beings to be a little frightening if you think about it for a while. If there is a country in the world that we need to untrustful of, it is China. This apparent imbalance my someday bring this country to its knees...IMHO.

 

[editec]

Munin, it not JUST the Bush Administrations fault that foreign governments now own so much of our debts.

I mean he's got his share of the responsibility, but then too so does Clinton, Bush I, Reagan, Carter, Ford, NiXXon, Johnson, Kennedy, Eisenhower, Truman and FDR.

Our trade policies punish industries on American soil and reward industries on foreign shores.

Hence the imbalance of trade which ends up as debts owed to foreign nations.

Yes, but during the governing of those presidents the situation was "under control".

FTD - Statistics - Country Data - U.S. Trade Balance with China

Yes, I suppose it was.

It took years for the percicious effects of one bad policy after the other to effect our enormous economy.

And one supposes that it will take years of more sensible trade policies to turn around our economym now that we have become dependent on imports to supply us with the stuff that we no longer make in America, too.

Obviously avoiding trade wars is as much as part of the mission as turning around the deindustrialization which we've encouraged to happen.

 

[Article 15]

It beings to be a little frightening if you think about it for a while. If there is a country in the world that we need to untrustful of, it is China. This apparent imbalance my someday bring this country to its knees...IMHO.

I think we war with them before that happens.

 

[Munin]

It beings to be a little frightening if you think about it for a while. If there is a country in the world that we need to untrustful of, it is China. This apparent imbalance my someday bring this country to its knees...IMHO.

I think we war with them before that happens.

That will be a strange situation, we d pay for the war with their loans then? They can already pressure the US, they are the biggest holder of US debt which means the can send the dollar crashing down anytime they want (by selling all their debt instantly): this would put the US in a situation it could possibly not even afford to wage war against China without destroying the US economy.

 

[sealybobo]

China now biggest foreign owner of U.S. Treasuries - BloggingStocks

Did you hear about this on Thom Hartmann today? I wish our republican friends would leave the mainstream/right wing media for a couple weeks and start getting the facts.

All their arguments are sooo lame:

The democrats won't work with us. Why should they? You didn't work with them and your policies got us in this mess.

Freddy & Fanny Mack caused this and Bush tried to stop it. What a joke. Freddy & Fanny are a fraction of the problem

Debt is good. Remember last year and the year before we warned them about all the debt we were accumilating and borrowing from China and they actually argued that some debt is good? As if we are retards who don't understand Econ 101.

So now we see that we are right. Yet still the people on the right continue to say, "everyone has to share the blame".

I don't know about the rest of you, but to me the GOP are soooo obvious with their tactics and spin. And all of the sudden they are fiscally responsible? The same guys that doubled the debt with GW?

They gave Bush whatever he wanted and Bush didn't veto anything they wanted. This wrecked economy is 100% the GOP's fault. Stop even listening to Republicans. They need to take a 2 year nap. Just sign what we give you and shut the fuck up. If it doesn't work, use that against us in 2010.

But don't take the country down because you are sore losers.

If we borrow from China and the economy does not improve, China will own us.

This global depression is the plan of the global bankers. They will gladly give up America if they can control the entire world. Just like the bankers who started the Federal Reserve gave their millions away to charity. Why not when they stood to make trillions? BFD!!!

 

[Andrew2382]

lmao at fannie and freddy only being a fraction of the probem when trillions of dollars in mortgage securities were floating around "backed" by these 2 piece of shit entities in the pockets of fat cocksucker fucks like barney frank and chris dodd. Then it turns out they are all worthless and the companies go bankrupt....yeah only a frac tion

you partisan **** rag

you need to run your head into a brick wall and maybe it will knock some sense to you