China to dump 700 billion US bonds

[Manidabest]

things are leading upto 3rd world war in 2023

 

[ChineseTiger1986]

things are leading upto 3rd world war in 2023

Then better to brace yourself, since this is a crazy world.

 

[PakSword]

This time will be different when they feel they have nothing to lose.

Those far right anti-China hawks are in charge right now, and these guys are institutionally super racist who won't allow any non-white people to reach at the top of the world, and won't allow their children to live under the shadow of China.

They are going nuts right now, and when they were dealing with the Soviet Union, never seen they have done anything remotely close in a such form of hatred, bigotry, and hysteria.

So you are saying they might be directly involved in the next war with China? I don't think US's establishment will allow destruction of its country like that.. a direct war with China means US and NATO countries will go back to 1940s when they started developing.

I think they will involve their illegitimate kids.. such as India, Taiwan and Vietnam..

 

[Beast]

This time will be different when they feel they have nothing to lose.

Those far right anti-China hawks are in charge right now, and these guys are institutionally super racist who won't allow any non-white people to reach at the top of the world, and won't allow their children to live under the shadow of China.

They are going nuts right now, and when they were dealing with the Soviet Union, never seen they have done anything remotely close in a such form of hatred, bigotry, and hysteria.

Those hawkish Americans in top are cowards. They will not risk death for anything. They just need to be reminded a second option as second best to China is still optional for them. Just like how Great Britain fall from Grace after WWII. They are still a great develop nation but not the top 3.
Imagine if Great Britain try to fight US to stay on top. They will be annihilated 50years ago.

But US has no chance to annihilated China without getting themselves killed. China DF-41 ICBM or the non interceptable DF-17 can killed all American from this globe.

 

[KungFuLee]

LOL. As if that have anything to do with US dollars.

Many people seems to forget T-Bill is also an investment. Country trade T-Bill is like we trade stock, sometime you buy, sometime you sell. Indeed China sold nearly 700 billions T-Bill since 2015 (If my memories serve me right) but that does not mean

1.) Those T-Bill goes no where, somebody have to buy them for China to sell them, and we did not see who buy them, maybe Japan who need to hold on to more US T-Bill in place of the reserve? Or simply US financial outlook have improve and buy back the T-Bill. Judging form the US treasury report, Japan simply buy them off China. One need to realise that China still hold an extreme amount of US T-Bill (I think it was 1.1 trillion) after said "Dump"

2.) That have nothing to do with US currency as OP suggested. Currency is not T-Bill, T-Bill help with currency flow, but that is just the secondary role, the primary role is simply bank on US Dollars, and since US is China Top trading partner. Of course holding US Treasury Debt is a good thing. It give China negotiation power. That does not change anything regarding currency flow. Simply because T-Bill is comparatively small number (low 6 trillions) compare to currency flow with US Dollars (9 Trillions a day)

The reason why China decrease their T-Bill is actually very simple. China is having a trade war with the US T-Bill is a liability for US in term of a trade conflict (Remember country hold T-Bill have negotiation power to US). And in term of US-China Trade war, US want to limit China control over its Currency, actually China selling US T-Bill is a desire effect for US.

In fact, China sell T-Bill is bad for China, because in short, it created demand on its own currency, and at this moment, Yuan is not as strong to take the share US dollar leave behind.

@Mista

 

[Chellam]

Now just dumping nearly 100 billion, and there are 1 trillion to go. @KungFuLee

https://new.qq.com/omn/20191126/20191126A0A2C200.html

Chinese Own theory, wow again
if anything happen to $ then it will be affecting china also because china is the Biggest currency holder of $
if china wanted to teach a lesson then sell and flush all the $ you have then we will see who looses the most.

only Chinese and Pakistani are interested in the topic and rest of the person are watching your Nuke and DF theory

to Chinese and pakistan fun world enjoy you 2 guys.

 

[Mista]

LOL. As if that have anything to do with US dollars.

Many people seems to forget T-Bill is also an investment. Country trade T-Bill is like we trade stock, sometime you buy, sometime you sell. Indeed China sold nearly 700 billions T-Bill since 2015 (If my memories serve me right) but that does not mean

1.) Those T-Bill goes no where, somebody have to buy them for China to sell them, and we did not see who buy them, maybe Japan who need to hold on to more US T-Bill in place of the reserve? Or simply US financial outlook have improve and buy back the T-Bill. Judging form the US treasury report, Japan simply buy them off China. One need to realise that China still hold an extreme amount of US T-Bill (I think it was 1.1 trillion) after said "Dump"

2.) That have nothing to do with US currency as OP suggested. Currency is not T-Bill, T-Bill help with currency flow, but that is just the secondary role, the primary role is simply bank on US Dollars, and since US is China Top trading partner. Of course holding US Treasury Debt is a good thing. It give China negotiation power. That does not change anything regarding currency flow. Simply because T-Bill is comparatively small number (low 6 trillions) compare to currency flow with US Dollars (9 Trillions a day)

The reason why China decrease their T-Bill is actually very simple. China is having a trade war with the US T-Bill is a liability for US in term of a trade conflict (Remember country hold T-Bill have negotiation power to US). And in term of US-China Trade war, US want to limit China control over its Currency, actually China selling US T-Bill is a desire effect for US.

In fact, China sell T-Bill is bad for China, because in short, it created demand on its own currency, and at this moment, Yuan is not as strong to take the share US dollar leave behind.

@Mista

Lol @ OP using source from QQ. Let them live in their bubble, they probably don't even understand the basics of finance.

Meanwhile in the real world, the Chinese government is trying to develop an offshore market for Chinese companies to raise funding in USD. The Chinese government must be stupid then, if the USD is collapsing according to them.

https://www.scmp.com/business/banki...ns-record-sale-dollar-bonds-worth-us6-billion

There's another guy @Han Patriot who claimed that China's holding of US bonds is a WMD which can destroy the USD. I pointed out that Japan holds even more US bonds than China and can destroy the USD too according to his logic. But he turned around and say, Japan is different; they are simply paying tribute to the US.

China holding US bonds = WMD
Japan holding US bonds = Tribute

What double standards. So I say don't bother talking logic to nationalistic fanatics like them, they can't even make a coherent argument when it comes to their country.

 

[Paul2]

Not bad if there are buyers to taker over these dumping bonds, since the US bond is soon going to have negative yield. Not good for China to hold it anymore.

Indeed, the question now is whether China continues to being an international debt net buyer, or net seller.

OBOR is a pricey adventure Xi took us on. Our state companies doing infra project have excellent credit histories. Nevertheless, I believe they get debt too cheaply, and at 3-4% there will be a lot of buyers even in the West for it.

There will be less burden on state banks lending for near free, give more incentives to big institutional debt buyers from overseas to distance themselves from US bonds, and play for further Yuan internationalisation.

I still maintain, that internationalising our debt will only be beneficial until a reasonable limit. I don't want China to turn into a debt economy akin USA.

In fact, China sell T-Bill is bad for China, because in short, it created demand on its own currency, and at this moment, Yuan is not as strong to take the share US dollar leave behind.

Chinese exports are not as FX dependent as people tend to think.

A lot of our export is really "foreign materials+Chinese labour." To export $100 worth of goods, we have to import around half of that in materials.

If Yuan will go above 6 again, manufacturers will switch to making cheaper goods with more foreign materiel, and if it goes the other way around, they will do the opposite.

 

[Daniel808]

Lol @ OP using source from QQ. Let them live in their bubble, they probably don't even understand the basics of finance.

Meanwhile in the real world, the Chinese government is trying to develop an offshore market for Chinese companies to raise funding in USD. The Chinese government must be stupid then, if the USD is collapsing according to them.

https://www.scmp.com/business/banki...ns-record-sale-dollar-bonds-worth-us6-billion

There's another guy @Han Patriot who claimed that China's holding of US bonds is a WMD which can destroy the USD. I pointed out that Japan holds even more US bonds than China and can destroy the USD too according to his logic. But he turned around and say, Japan is different; they are simply paying tribute to the US.

China holding US bonds = WMD
Japan holding US bonds = Tribute

What double standards. So I say don't bother talking logic to nationalistic fanatics like them, they can't even make a coherent argument when it comes to their country.

China dump 1 Trillion US bond, maybe will not kill US Dollar. But it will make US goes to vicious cycle.

If China dump 1 trillion worth of US bond, then interest rates will spike, and US dollar value will goes down. And The FED will produce more dollars to cover the interest hike and devaluation of US Dollar. That's mean interest rates will spike higher, and US dollar value will down more.

A start of Vicious cycle, the beginning of THE END.
China just inject HIV Virus to US Dollar if they do that

And other countries like Japan, or UK will not cover all 1 Trillion US Bond that China dump.
If they do that and buy all US bond that China dump in single night, it will cause Huge problems in their own sick economy

Be realistic.

 

[Mista]

So entertaining to see a bunch of ignorant people who think $1 trillion is big enough to threaten the USD.

China dump 1 Trillion US bond, maybe will not kill US Dollar. But it will make US goes to vicious cycle.

If China dump 1 trillion worth of US bond, then interest rates will spike, and US dollar value will goes down. And The FED will produce more dollars to cover the interest hike and devaluation of US Dollar. That's mean interest rates will spike higher, and US dollar value will down more.

A start of Vicious cycle, the beginning of THE END.
China just inject HIV Virus to US Dollar if they do that

And other countries like Japan, or UK will not cover all 1 Trillion US Bond that China dump.
If they do that and buy all US bond that China dump in single night, it will cause Huge problems in their own sick economy

Be realistic.

Who's unrealistic? How obtuse are you to think 1 trillion is big enough to destroy the USD LOL. To put into perspective, that's just the market cap of Apple. You think that will destabilize and destroy the American economy?

The financial position of the United States includes assets of at least $269.6 trillion (1576% of GDP) and debts of $145.8 trillion (852% of GDP) to produce a net worth of at least $123.8 trillion (723% of GDP)[a] as of Q1 2014.

And do you even know the definition of dumping?

Dumping
2. The act of selling at a loss. This may apply to selling a stock, especially in a panic sale, to minimize losses. Alternatively, it may apply to a company selling low on purpose to gain market share or force competitors into a costly price war.

If China wants to 'dump' her US bonds, she has to sell significantly lower at a loss to destabilize the price. Eg, selling $1 trillion worth of bonds at $200b and make a $800b loss. Even if the US Fed doesn't intervene, I'm sure investors from all over the world (public or private) will jump in to buy, like y'know, US companies.

Meanwhile the RMB would tank as China makes a massive loss in her forex backing.

Fortunately, or unfortunately for investors around the world, the Chinese government isn't stupid like you guys to sell her US bonds at a loss. Continue your fantasies, 战狼们.

 

[Daniel808]

So entertaining to see a bunch of ignorant people who think $1 trillion is big enough to threaten the USD.



Who's unrealistic? How obtuse are you to think 1 trillion is big enough to destroy the USD LOL. To put into perspective, that's just the market cap of Apple. You think that will destabilize and destroy the American economy?



And do you even know the definition of dumping?



If China wants to 'dump' her US bonds, she has to sell significantly lower at a loss to destabilize the price. Eg, selling $1 trillion worth of bonds at $200b and make a $800b loss. Even if the US Fed doesn't intervene, I'm sure investors from all over the world (public or private) will jump in to buy, like y'know, US companies.

Meanwhile the RMB would tank as China makes a massive loss in her forex backing.

Fortunately, or unfortunately for investors around the world, the Chinese government isn't stupid like you guys to sell her US bonds at a loss. Continue your fantasies, 战狼们.

Bla bla bla sunshine
Until when?

There is a very informative post couple year ago from our mod Shotgunner51, who experienced in economic matters
https://defence.pk/pdf/threads/who-...t-creditor-nations.455610/page-3#post-8823835

 

[Genghis khan1]

System was created by west. System is rigged in favor of the West. China can play all the tricks they got but as long as they are part of the same game, they cannot win. Big daddy who owns the western capital and their banks, holds the cheat code to the game.

 

[Chellam]

So entertaining to see a bunch of ignorant people who think $1 trillion is big enough to threaten the USD.



Who's unrealistic? How obtuse are you to think 1 trillion is big enough to destroy the USD LOL. To put into perspective, that's just the market cap of Apple. You think that will destabilize and destroy the American economy?



And do you even know the definition of dumping?



If China wants to 'dump' her US bonds, she has to sell significantly lower at a loss to destabilize the price. Eg, selling $1 trillion worth of bonds at $200b and make a $800b loss. Even if the US Fed doesn't intervene, I'm sure investors from all over the world (public or private) will jump in to buy, like y'know, US companies.

Meanwhile the RMB would tank as China makes a massive loss in her forex backing.

Fortunately, or unfortunately for investors around the world, the Chinese government isn't stupid like you guys to sell her US bonds at a loss. Continue your fantasies, 战狼们.

you are messaging to useless and knowledge less people who believe only in Chinese Propaganda and news agency.

if this can happen china might have done just like when they increased a tax on american product

 

[Beast]

System was created by west. System is rigged in favor of the West. China can play all the tricks they got but as long as they are part of the same game, they cannot win. Big daddy who owns the western capital and their banks, holds the cheat code to the game.

There are always way to beat a game if you play it well. Why US need to restrict their budget and introduce monetary control if US can really print unlimited money?

 

[Genghis khan1]

There are always way to beat a game if you play it well. Why US need to restrict their budget and introduce monetary control if US can really print unlimited money?

You are betting against the house, and house always wins.

There is only one way not to lose, and that is to quit at the right time. Quit the game at the right time with enough players to survive and build you own game.

Saddam and Qaddafi tried but they had no leverage or friends.