They aren’t stupid.
dollar took a beating against foreign currencies last week.
The Chinese has been loading up on gold bullion, prestigious American hotels and real estate, and purchasing natural resource mines.
All those are priced in dollars.
Plus China has increasingly made arrangements to settle foreign trade in currencies other than dollars.
That reduces the need to maintain dollar reserves.
The day of reckoning draweth nigh.
No worries....we are just buying our own debt these daze. The Federal Reserve just creates $$ out of thin air and lends it to banks for this purpose. Problem solved.
It's also worth noting that the dumping of U.S. bonds doesn't seem to have had any effects elsewhere in the U.S. economy. With the rise in the U.S. stock market over the last two months, I wonder if these investors are simply selling U.S. bonds and buying U.S. stocks.
FOR THE ONE MILLIONTH TIME: The amount of money we owe to China or for that matter, to ALL foreign governments COMBINED is INSIGNIFICANT compared to the amount of money we owe to OURSELVES.
Yes, I am screaming[!!!] because BI and all the other dumbasses of the world seem to think that closing the money spigot from China, or Japan, or the UK is going to stop (or even slow down) our irresponsible profligacy.
No it is NOT.
Beijing is not being ransomed. Our parents' and our own retirement and our children's, and grandchildren's and great-grandchildren's futures are what is being ransomed. That debt is literally orders of magnitudes greater than the piddling bit we own to the Chinese.
Got that? Have you stupid, stupid, morons at Business Insider finally got that?!
Dumbasses.
“..it is concerning that the Chinese government has been selling off it’s US government debt.”
Who are they selling it to?
What elementary school did the author of this piece attend?
Regards,
Nobody ever tells the whole story. Foreign governments are dumping US debt. So who is buying US debt. You can’t sell it unless someone is buying it.
For years, the US government has been able to finance it's its debt [..]
Regards,
If foreigners dump our debt more than we dump theirs, the value of the dollar against other currencies will decline. Imports will decline and exports will increase — bad for consumers, but favored by mercantilism advocates in the Trump/Buchannan camp.
> “For years, the US government has been able to finance it’s debt at cheap interest rates because there have always been plenty of enthusiastic buyers. As long as the Chinese, the Japanese, and others continue to hold and buy large amounts.”
Stupid writer looking to fill space for a deadline.
Chinese have dumped nearly all of their US Debt as have other nations, for years now.
Fed Reserve is now biggest purchaser of US Debt, by far, very far.
International haters of America are pissed that its central bank, the Federal Reserve ‘printed all that money’.
Normally such money creation (printing = digital fund creation) would result in inflationary collapse but in today’s world of international currencies, it’s a race to the bottom and major currencies other than the US Dollar are leading the race to the bottom.
It seems a fortunate circumstance but long term it grows the government reservation of the United States with a resultant decline in the US population’s ability to lead and innovate. Seemingly benign actions have unforeseen circumstances.
what does it mean to dump the debt.
It means they are selling it. It has nothing to do with us because they must hold the debt till it is mature. They will collect what ever interest is payable.
China is selling assets to raise the cash for other purposes than just sitting on it
Foreign governments dump U.S. debt at record rate 03/19/2016
Foreign governments dump U.S. debt at record rate 03/16/2016
Who’s buying it? Somebody must be doing the buying?
That’ll keep them busy for the next century. We have $27 trillion in debt.
I think the rest of the world knows we’re getting close to that magic number when we default...