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Thread: Japan overtakes China in US Treasury holdings

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    Japan overtakes China in US Treasury holdings

    China’s ownership of U.S. government debt fell in December by the most since 2000, allowing Japan to regain the position as the largest foreign holder of Treasury securities.

    Japan’s holdings rose 1.5 percent in December to $768.8 billion while China’s dropped 4.3 percent to $755.4 billion, Treasury Department figures showed on Tuesday.
    China allowed its short-term Treasury bills to mature and replaced them with a smaller amount of longer-term notes and bonds, the data showed.

    China, with the world’s largest central bank reserves, may be moving money to other investments from the relative safety of Treasuries as the U.S. runs record budget deficits,

    economists said. China’s Treasury holdings peaked at $801.5 billion in May, and net sales in November and December were the first consecutive months of reductions since late 2007.

    Japan overtakes China in US Treasury holdings - Hurriyet Daily News and Economic Review

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    Re: Japan overtakes China in US Treasury holdings

    Quote Originally Posted by MetalGear View Post
    China allowed its short-term Treasury bills to mature and replaced them with a smaller amount of longer-term notes and bonds, the data showed.

    China, with the world’s largest central bank reserves, may be moving money to other investments from the relative safety of Treasuries as the U.S. runs record budget deficits...
    It's still early, but this could be a fresh indication that the world's appetite for U.S. Treasuries could wane unless the U.S. develops a credible fiscal consolidation plan that brings its revenue in line with its needs and addresses the fiscal imbalances associated with its mandatory spending programs. To date, there is little indication that U.S. policymakers are willing to make the difficult choices necessary (tax hikes-entitlement spending reforms) and the nation's fiscal policy is essentially running on autopilot so to speak. In the long-run, such a course is not sustainable. Waiting until that moment arrives will require far more wrenching choices than those associated with a transition toward a sustainable fiscal situation.

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    Re: Japan overtakes China in US Treasury holdings

    I am happy about this on two levels:

    1. Japan in general shares the same values of human rights and democracy as the US, in stark contrast to China. Japan is a US-ally and is far more reliable as a partner (despite some problems) than China is or is likely to be anytime in my lifetime.

    2. I would love to see the world turn its nose at US treasuries. It might actually force some fiscal responsiblity on Dems and the GOP in Washington!
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    Re: Japan overtakes China in US Treasury holdings

    So when will Obama use up his inheritance, and actually have to take responsibility for the economy?
    "He who does not think himself worth saving from poverty and ignorance by his own efforts, will hardly be thought worth the efforts of anybody else." -- Frederick Douglass, Self-Made Men (1872)
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    Re: Japan overtakes China in US Treasury holdings

    Quote Originally Posted by American View Post
    So when will Obama use up his inheritance, and actually have to take responsibility for the economy?
    Who would you rather get US finances sorted? Republicans?

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