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Harder to buy US Treasuries

Councilman

Councilman

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Shanghai Daily | ???? -- English Window to China News

Looks like Obama is getting wish right before Christmas. His dumb ass policies have squandered billions of dollars on foolish utterly stupid programs and he can blame it all on Bush. Never mind that what the money wasted on was done by the DIMS (no spell error) on Obama's watch.

I have warned from the beginning he was out to destroy the economy and he's almost there.
The Dims vote to raise the debt ceiling and the Chinese say so sorry no more money to save you with.

The only thing worse than this is there are so many empty Obama worshipers out there who will believe the next set of lies nothing is going to happen to stop this before it's way too late to save us.

Harder to buy US Treasuries
Created: 2009-12-18 0:13:35
Author:Zhou Xin and Jason Subler



IT is getting harder for governments to buy United States Treasuries because the US's shrinking current-account gap is reducing supply of dollars overseas, a Chinese central bank official said yesterday.

The comments by Zhu Min, deputy governor of the People's Bank of China, referred to the overall situation globally, not specifically to China, the biggest foreign holder of US government bonds.

Chinese officials generally are very careful about commenting on the dollar and Treasuries, given that so much of its US$2.3 trillion reserves are tied to their value, and markets always watch any such comments closely for signs of any shift in how it manages its assets.

China's State Administration of Foreign Exchange reaffirmed this month that the dollar stands secure as the anchor of the currency reserves it manages, even as the country seeks to diversify its investments.

In a discussion on the global role of the dollar, Zhu told an academic audience that it was inevitable that the dollar would continue to fall in value because Washington continued to issue more Treasuries to finance its deficit spending.

He then addressed where demand for that debt would come from.

"The United States cannot force foreign governments to increase their holdings of Treasuries," Zhu said, according to an audio recording of his remarks. "Double the holdings? It is definitely impossible."
Click to expand...
 
Wait...are you saying it's a bad thing that the US-China current account deficit is shrinking? :confused:

US treasuries are incredibly bubbly right now. I would strongly encourage everyone to steer clear of them for a few years, and get out now if you're already invested in them.
 
If it's shrinking it's Obama's fault, if it's expanding it's Bush's fault. Check.
 
The delusion that one man, the President, can affect the entire economy so deeply, is a persistent one.
 
American said:
If it's shrinking it's Obama's fault, if it's expanding it's Bush's fault. Check.
Click to expand...

Current account balance is shrinking due to less consumption in the U.S, due to the recession.
 
Um...

I'm not sure quite what to say. Foreign governments will continue to purchase securities to prop up the value of their reserves. Decreasing the availability of dollars at the same time will cause the value of the dollar to rise. And it is highly unlikely that the Chinese will go cold turkey. And even if the Chinese stopped and sold off that only represents somewhere between 5 and 7% of total debt. Not exactly enough to cause panic.
 
First the 2.3 trillion that the Chinese hold is a lot more than 5-7% of our debt.

There are enough dollars out there so we don't have to worry about a shortage of supply, nor is there a surge in demand.

For now Foreign governments will continue to buy our debt. The real question is will this continue forever. Maybe the bigger question is what interest rate will they demand.

If the interest on our debt goes up by 1% that will cost us about 120 billion at today's level of debt.
 
1. zhu min speaks the obvious

2. but that he SAYS it is quite revealing

3. and the timing

4. coincidental with the passage of health care, dependent for deficit control on its half T cuts to m and m that aint never gonna happen, the comments of the people's bank manager are yet another chinese bitch slapping of our clueless commander in chief

5. it is NOT in the interests of the people's people to be TALKING DOWN treasuries

6. yet there he is

7. hu has humiliated obama on the climate, on ruling out sanctions against iran

8. and now THIS

9. hu whispered in obama's big ears during that disastrous asia trip NOT to do this

10. but the oblivious one just went right ahead

11. he's in BIG TROUBLE now

12. with his BOSS

13. the DEBT CEILING has been scaled lower

14. which only means pelosi and reid are gonna have to roof repair again in 2 months

15. obama's suddenly talking like a deficit hawk

16. LOL!

17. how DUMB does he think are the american people?

18. who's DUMB

19. zhu: "the united states cannot force foreign govt's..."

20. unlike consumers of insurance who are suddenly required to buy up else face fines, criminalization and jail

21. obama's agenda is expired

22. more like, repossessed
 
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Anyone who thinks they will keep buying our debt is in for one hell of a surprise.

now THAT is an OPINION trolls! :2wave:
 
ConservaBill said:
Anyone who thinks they will keep buying our debt is in for one hell of a surprise.

now THAT is an OPINION trolls! :2wave:
Click to expand...

The question is not if but when.....
 
washunut said:
First the 2.3 trillion that the Chinese hold is a lot more than 5-7% of our debt.
Click to expand...

Correction, that $2.3 trillion is China's total reserves. Around $700 billion is US securities. China doesn't hold $2.3 trillion in US securities.

China's U.S. treasury debt holdings up_English_Xinhua

For now Foreign governments will continue to buy our debt. The real question is will this continue forever. Maybe the bigger question is what interest rate will they demand.

If the interest on our debt goes up by 1% that will cost us about 120 billion at today's level of debt.
Click to expand...

Absolutely. The next question is when the tipping point comes. When countries decide that their exposure is too large.
 
the new york times reported four saturdays ago that SERVICE on the debt, mere INTEREST ALONE, is to approach ONE TRIL PER YEAR by 2016 or 2017

i don't know anymore than the rest of us how true is the lady's prophesy, altho we all suspect it's dangerously credible

but when the times said what the times said, the national discussion changed

DEFICIT became the issue

suddenly now as crucial almost as JOBS, another concern completely overlooked by obtuse obama his first year

everyone's seeing the president now pirrouetting abruptly his priorities to spending, jobs, the deficit, the economy

"pivot" is the word all the pundits employ

you're gonna see from now on everything the doofus does is about debt

moving gitmo guys to illinois is deficit reduction

the health care bill is the greatest piece of debt control in 10 years

not if those half T cuts to m and m don't go down as promised, it doesn't

and everyone knows it

anyway, obama's gonna suddenly go doctor deficit on everyone

does he really think anyone will buy it?
 
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The Prof said:
the new york times reported four saturdays ago that SERVICE on the debt, mere INTEREST ALONE, is to approach ONE TRIL PER YEAR by 2016 or 2017

i don't know anymore than the rest of us how true is the lady's prophesy, altho we all suspect it's dangerously credible

but when the times said what the times said, the national discussion changed

DEFICIT became the issue

suddenly now as crucial almost as JOBS, another concern completely overlooked by obtuse obama his first year

everyone's seeing the president now pirrouetting abruptly his priorities to spending, jobs, the deficit, the economy

"pivot" is the word all the pundits employ

you're gonna see from now on everything the doofus does is about debt

moving gitmo guys to illinois is deficit reduction

the health care bill is the greatest piece of debt control in 10 years

not if those half T cuts to m and m don't go down as promised, it doesn't

and everyone knows it

anyway, obama's gonna suddenly go doctor deficit on everyone

does he really think anyone will buy it?
Click to expand...

One of the things Obama Been Lying counts on is that Hitler quote that says: "How fortunate for governments that the people they administer don't think."

When it comes to today's Liberals and may others as well, truer words were never spoken.

Going on no one understands what the individual cost of today's debt is for every man woman and child in the Nation and what it will mean if the sale of Treasuries is suddenly ended.

Printing fiat money will lead to hyperinflation and it will in no time cost $100 for a loaf of bread, if you can find a loaf of bread. Over night the value of a dollar could crash over night and become virtually worthless, and most people are asleep and Obams is counting on the dozing off at on the job to continue.
 
Mainstream Media now means anything Coucilman can link to from Drudge.
 
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