There is mounting evidence that China's central bank is undertaking the process of divesting itself of longer-dated US Treasuries in favor of shorter-dated ones. Full Story »
Posted by Dwight Rousu
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The analysis presented here of China and their strategies for dealing with the potential collapse of the dollar and treasuries seems rational and a bit frightening. The article is well written.
China buying oil and coal resources to hedge against a treasuries bubble and dollar collapse unfortunately does imply a continuing path of using ... More »
This is turning out to be a win-win-win situation for China as it capitalizes upon the important opportunities afforded it by the present global crisis. More »
The facts and arguments are impressive. The implications are pretty scary, and mirror what the Czech head of EU is saying. However, because it's focused on China it doesn't go into what the US can do to mitigate the 'Treasuries bubble' - since it's caused by attempts to re-charge the American economy. It also doesn't go into the implications of China investing in 'resources', some of which are getting scarce, and what this investment might do to resource prices worldwide.
A lot of speculation. They have no idea what China will do and they attribute a wisdom to China that is exaggerated. Could China be divesting some long treasuries because they have big profits due to lower interest rates?
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