U.S. lets China bypass Wall Street for Treasury orders

[Cheetah786]

China can now bypass Wall Street when buying U.S. government debt and go straight to the U.S. Treasury, in what is the Treasury's first-ever direct relationship with a foreign government, according to documents viewed by Reuters.

Exclusive: U.S. lets China bypass Wall Street for Treasury orders | Reuters

 

[longyi]

A very smart move by the US Treasury. By giving preferential treatment to China it has a better chance to retain her huge investment portfolio. Japan also has a big US Treasury holding but I think she might need some of them soon considering her huge budget deficits.

 

[kawaraj]

this is SIGNificant move, I am still thinking about it.

it could be the former monetary alliance coming into being. we know it has been years technically when RMB pegs with USD, it's by nature one currency system, that's also one of the basic conception of what the Amercians called G2.

China has been dilute and even snub such an idea of G2(US-China economic alliance which dominates the world,but in a way follow US suits) , but I observed recently China has tuned the idea to C2 (clearly strong China elements).

Guess this part of the collusion at works. One thing for sure is China is now onboard with the US to ditch Euro. Don't know what's that implication to the world.

 

[Fanling Monk]

It seems like these days the US is using stick and carrot approaches in dealing with dealing with China. On one hand she is using military alliances and drills with various Pacific nations and also rhetoric and insinuations about China's military buildups, on another hand she is getting closer to China in economic dealings.

 

[Chinese-Dragon]

China can now bypass Wall Street when buying U.S. government debt and go straight to the U.S. Treasury, in what is the Treasury's first-ever direct relationship with a foreign government, according to documents viewed by Reuters.

Exclusive: U.S. lets China bypass Wall Street for Treasury orders | Reuters

That sounds quite desperate, don't you think?

Giving a direct insider link to the person who is loaning you money. A link which they don't even give to their best friends Israel.

 

[itaskol]

which country else can bypass Wall Street when buying U.S. government debt?
and why it is good for china?

 

[JayAtl]

That sounds quite desperate, don't you think?

Giving a direct insider link to the person who is loaning you money. An link which they don't even give to their best friends Israel.

this is an economic conversation so I can understand why we have to explain it to you. When you are willing to buy trillion dollars debts at a paltry 2%- then you get direct access. Israel does not buy US treasuries or at the rate you guys buy ours. But why do you continue to buy it? because We are a sound investment... even at a ridiculous low rate of 2% return.

 

[Chinese-Dragon]

this is an economic conversation so I can understand why we have to explain it to you. When you are willing to buy trillion dollars debts at a paltry 2%- then you get direct access. Israel does not buy US treasuries or at the rate you guys buy ours. But why do you continue to buy it? because We are a sound investment... even at a ridiculous low rate of 2% return.

No, you're not a sound investment at all. S&P just downgraded India, and the person who invented the idea of BRICs said that "India is the most disappointing BRIC nation".

But if you are talking about the USA, then yes. The Americans are still a relatively safe investment.

 

[Chinese Century]

why the f**k are we still buying this sh*t.

we need to sell these crap and buy real things.

 

[Fanling Monk]

which country else can bypass Wall Street when buying U.S. government debt?
and why it is good for china?

I believe China is the only country with that privilege now. If China can buy US bond directly from the treasury she cut out the middle man, hence cuts commission cost, and also bypass the uptick and downtick purchase on the open market which translate to big money saving also.

I think the meager 2% gain is not a good investment on today's 'money is king' environments but is safe tough. There are many third world countries that offer much more albeit more risky and that's the route China is taking to diversify her capital portfolio.

 

[Chinese Century]

we lend america our money so that they can build up their military to contain us.

makes me angry.

 

[Chinese-Dragon]

why the f**k are we still buying this sh*t.

we need to sell these crap and buy real things.

The problem is that there is a limit to how many real assets you can buy overseas. Many of our attempts to buy things get blocked, in America for example.

For our currency reserves, China needs assets that are "highly liquid", in case we need to prop up the banking sector or something else.

What options are there? US bonds, EU bonds, Japanese bonds. All of them are terrible options, but what can you do?

 

[kawaraj]

I believe China is the only country with that privilege now. If China can buy US bond directly from the treasury she cut out the middle man, hence cuts commission cost, and also bypass the uptick and downtick purchase on the open market which translate to big money saving also.

I think the meager 2% gain is not a good investment on today's 'money is king' environments but is safe tough. There are many third world countries that offer much more albeit more risky and that's the route China is taking to diversify her capital portfolio.

that will significantly change the treasure note yields, and affect monetary policies.

US fiscal policy has not been independent for a while, and monetary policy steps in that mile. And now it officially announced there's no FED anymore, there is only FED-PBOC in this world.

 

[JayAtl]

No, you're not a sound investment at all. S&P just downgraded India, and the person who invented the idea of BRICs said that "India is the most disappointing BRIC nation".

But if you are talking about the USA, then yes. The Americans are still a relatively safe investment.

and we use those monies to contain and surround you. Now that is what I call a "downgrade of a relationship". I'm glad though I was able to explain simple economic realties " ...

 

[R0H1T]

we lend america our money so that they can build up their military to contain us.

makes me angry.

You're not lending the US anything ! This is done to keep the Yuan appreciation in check & if you wouldn't buy the US debt there are others in the market who will especially since there are only a few AAA rated nations left not to mention banks, pension/hedge funds et al need to invest some part of their portfolio in AAA rated securities ! So do yourself a favor by not being delusional about this "lending" theory !