What to make of China's Buying Treasuries Direct?

Seeking Alpha ^ | May 22, 2012 | Simit Patel

[John S Mosby]

A rather significant story to start off the week was that of China's new relationship with the U.S. Treasury, in which China will buy U.S. government bonds directly from the U.S. Treasury - not through primary dealers like Goldman Sachs (GS), UBS and other big banks that are quite unpopular these days.

[John S Mosby]

I have not seen this on FR. If it has been posted, I apologize. This is nuts.

Who did this? Tim Geithner, who works for the marxist current present_dent. And this capability is unique. No other country can do this. This SHOULD NOT be happening- no way to monitor the fake money and debt notes held by our ENEMY. Anyone who says we should not be stopping a nation, that we unwillingly (except by obamaists whose goal is to dismantle our Constitutional Republic under the political guise of "removing" unpopular middlemen) allow to continue to finance our catastrophic national debt, misses the point. Goldman has offices in China-- good Lord! They are party to this, tracking and dealing still-- and supporting these marxists.

We the People, make our laws. And we should not allow this Treasury/Fed love dance to continue on the dance floor we BUILT! Call your congressman/ Senator. This must stop!!

"Give me control of a nation's money and I care not who makes her laws." Mayer Amschel Rothschild

[CarmichaelPatriot]

They’re just pieces of paper. Let’s default on them and see what happens when they come and try to collect. Even 10 million Chi-Com soldiers wouldn’t stand a chance against the 100 million gun owners who are part of the real owners of this country.

We’ll let them take all the politicians who spent the money as hostages, but I doubt they’d want them.

[balls]

Spain has tried to establish a similar relationship with Germany but the Germans will not fall for it. It allows the debtor to avoid rating agency down-grades and rate increases in return for giving up some central bank control.

[balls]

With the current traitor in the WH, it’s anybody’s guess what we are giving China in return; probably defense/technology secrets or policy control.

[GOPJ]

Something’s going on behind the scenes...

[GOPJ]

It allows the debtor to avoid rating agency down-grades and rate increases in return for giving up some central bank control. An illusion to keep things 'working' until the election?

[Iron Munro]

With the current traitor in the WH, it’s anybody’s guess what we are giving China in return;
probably defense/technology secrets or policy control.

[Rockingham]

China’s motives are probably to save on fees and to avoid front-running by the purchasing intermediary.

[Son House]

Someone is hoarding a whole lot of cash;

Banks Pressured to Buy Government Debt
http://www.freerepublic.com/focus/f-news/2890296/posts

US and European regulators are essentially forcing banks to buy up their own government's debt—a move that could end up making the debt crisis even worse, a Citigroup analysis says.

Regulators are allowing banks to escape counting their country's debt against capital requirements and loosening other rules to create a steady market for government bonds, the study says.

[Gaffer]

My guess is that in return, the US Treasury (i.e., Obama) now gets to enter into private deals with China that will not involve the FED. In other words, he can make side deals on interest rates, etc. that won’t go public....

What do you think it’s for? Politics is power AND money. Follow the money - why would they do this unless it were for deals they wouldn’t want to go public?

[KarlInOhio]

How much of this was just China getting sick of paying American banks a percentage for processing the orders? If you buy one car you go to the dealership, if you buy a thousand you call the manufacturers directly instead of letting the dealer skim a little for every car.

[balls]

I don’t think disintermediation is China’s strategy, after all, they don’t need to be concerned with the middleman failing. The middlemen they have been going through are “too big to fail” - effectvely backed by the full faith and credit, to the extent that China allows it to exist, of the US treasury. They want to extract value directly from 0bama in the front-end negotiations asap; i.e. right now, before November elections.

[dennisw]

Unlike China-
Our own Federal Reserve does not buy Treasuries direct although it could exert pressure to do so. Instead it buys through the primary dealers (huge prominent banks and a few Wall Street firms) This is about a 4 billion dollar gift each year to their buddies (primary dealers) That really should be going back to the Federal Gov't the way all FR profits go after deducting for its substantial operating expenses