Ive been complaining about people/countries/ and anyone with money who bids on treasuries for the longest time. Lately, most of my attention has been on China, simply because they have been the largest purchaser of these useless debt. At times it may seem like I give the Chinese too much credit, but its all justified. China isn't buying as much treasures as they used to (you can argue the reasons till you go blue, we shall simply never know), all that we do know is that they dont like us very much, and according to them, for good reason, China foreign minister says U.S. ties "disrupted".
The above graphs shows how the Chinese are effectively cutting back, and the following article displays how they can effectively use further moves to actually hurt the US;Will China Use Its U.S. Bond Holdings as a Weapon?
The story remains, the USD is in trouble, the treasury market is a telling sign, and the direction remains intact, we are in a long term bear market and its simply getting more dangerous.
Bigger default risk than Greece?
Written by Prophet
Tuesday, 02 March 2010
Not that anyone was silly enough to believe the default risk issued by Greece was worth the ink used to print the story, but its always a good feeling when a concern that I had with California, is brought to light via a so called credible MSM source. A while back I commented on the Greece/Euro story in an entry called Greece Who?, and later with the Eur(o) serious?
Ok so I'm 2 weeks late, but the new year is here none the less, and its the year of the Tiger. While in Vancouver for the Olympics, I got to enjoy the festivities of the Chinese new year in China town, it was awesome. China is back and stronger than before. Despite a China distaste for Obama's meeting with the Dalai Lama (Read here). Mix that with this piece of news from a while ago ... China retaliates over US arms sales to Taiwan. And... that gives you this!
That, my friends, is war (economic). The Chinese are not happy, they are smart with what they want to hold as far as reserves go, and they are not scared to show it.
