June 2011
« May   Jul »

China selling 97% of their short term Treasury Bills

China sold off about 18% of its US financial instruments, specifically their short term one year or less T-Bills. China still owns almost a trillion in US debt but it is clear that China is divesting in its holding of the dollar.

Combined with the highly leveraged and financially precarious position of the Federal Reserve we can expect that the economy to continue to deflate.

Why only short term debt? Easy to roll out of and get rid of.

I imagine by May of 2012 the Keynesian’s will understand that the fake growth is over. Maybe then they will have noticed the guy in the White House has spent 48% of his time away from the office partying it up with the rich and famous while the empire crumbled.

The following appear in CNSNEWS.Com

China Has Divested 97 Percent of Its Holdings in U.S. Treasury Bills

( – China has dropped 97 percent of its holdings in U.S. Treasury bills, decreasing its ownership of the short-term U.S. government securities from a peak of $210.4 billion in May 2009 to $5.69 billion in March 2011, the most recent month reported by the U.S. Treasury.

Treasury bills are securities that mature in one year or less that are sold by the U.S. Treasury Department to fund the nation’s debt.

President Obama spends 48%of his days on vacation and flies around first class, President Hu of China flies commercial. Which one do you think takes his job seriously?

Mainland Chinese holdings of U.S. Treasury bills are reported in column 9 of the Treasury report linked here.

Until October, the Chinese were generally making up for their decreasing holdings in Treasury bills by increasing their holdings of longer-term U.S. Treasury securities. Thus, until October, China’s overall holdings of U.S. debt continued to increase.

Since October, however, China has also started to divest from longer-term U.S. Treasury securities. Thus, as reported by the Treasury Department, China’s ownership of the U.S. national debt has decreased in each of the last five months on record, including November, December, January, February and March.

Rest of blog here.

Leave a Reply

Your email address will not be published. Required fields are marked *