The Chinese are a lot of things, but they aren’t dumb.
If, as I assume, they are selling US bonds purchased when interest rates were higher they are selling them at a premium, and before an increase in US interest rates erode that premium.
The Chinese aren’t dumb? They build entire ghost cities just to keep their economy going. So how dumb is that?
“The Chinese are a lot of things, but they aren’t dumb”
So all of a sudden our COMMUNIST CENTRAL PLANNERS are smart??
The other poster mentioned the ghost cities they built.
Let them buy ALL the gold and dump ALL the treasuries! When you own all of something it loses ALL its’ importance. And by selling treasuries they take off the table any leverage they have on that too.
And meanwhile, LONG-TERM rates, the ones the Fed can’t control, continue to stay low.
The markets are telling you right now that DEFLATION is more likely than INFLATION. After all those years of hyper-inflated musings over hyperinflation.
Some things are more expensive these days, like food and health care and some things are cheaper, like owning a car that goes 150,000 miles instead of 75,000 or mortgage financing if you get it.
The world did not end in 2008.
This move by the Chinese sounds exactly like a bunch of central planners trying to get too cute with their financial decisions. I wouldn’t touch gold here with a 10-foot pole.
I am so screwed.