Washington eyes forcing Beijing to buy more US debt

[vi-va]

Can some one enlighten me as to why China is still buying any US treasury bonds?

liquidity.

 

[zectech]

liquidity.

There is no safer liquid asset than physical gold.

The World Gold Council’s latest edition of Gold Investor highlights one of gold’s many attractive aspects: its liquidity. Liquidity refers to “How easy it is to buy or sell a specific product or type of metal.” For example, a one-ounce American Gold Eagle coin is very liquid due to a very active, reliable, ready population of buyers and sellers almost always being present. Gold, in general, is known to be a very liquid asset.

https://www.americanbullion.com/another-reason-to-consider-gold-liquidity/

Hopefully China is secretly stockpiling their own gold production and silver production. Among the top in the world.

 

[nahtanbob]

No need to export. We consume because it raises our standard of living.

Good in theory. That is not how you built your economy

 

[bolo]

liquidity.

You know that's just half truth.

 

[vi-va]

You know that's just half truth.

Maybe. Many reasons, liquidity is one of the most important. Also we have to buy some bonds so far. US bonds is the largest.

 

[bolo]

Maybe. Many reasons, liquidity is one of the most important. Also we have to buy some bonds so far. US bonds is the largest.

So you buy US debt to be paid back with more US debt.

 

[vi-va]

So you buy US debt to be paid back with more US debt.

no. our foreign ex reserve is mostly for currency stability. It's 3 trillions for quite a few years. No increase, no decrease.
US debt is bad business, not profitable at all. China will invest somewhere else, such as BRI, CPEC.

 

[vi-va]

There is no safer liquid asset than physical gold.

The World Gold Council’s latest edition of Gold Investor highlights one of gold’s many attractive aspects: its liquidity. Liquidity refers to “How easy it is to buy or sell a specific product or type of metal.” For example, a one-ounce American Gold Eagle coin is very liquid due to a very active, reliable, ready population of buyers and sellers almost always being present. Gold, in general, is known to be a very liquid asset.

https://www.americanbullion.com/another-reason-to-consider-gold-liquidity/

Hopefully China is secretly stockpiling their own gold production and silver production. Among the top in the world.

The world has not enough gold for China exchange reserve. Literally, China can buy every gram of gold on this planet. They won't sell.

 

[jamal18]

basically they're buying US's debt with these treasuries and since these are guaranteed investments by the state, you'll only lose your investment if the state crumbles... either ways good news for china... since US is increasingly indebted towards the chinese... and they're using chinese credit to buy chinese products... basically the great loot of the east.
In plain words, china wants trade surplus with the US, ie sell more than they buy from US
I'm happy for one because, imperialism robbed us asians for centuries... now it's our turn

Guaranteed by the State? The collapse of the dollar in the 60's (?) was caused by the US treasury lying to dollar holders, they were printing more dollars than they had gold in stock. This was basically fraud.

The US has just taken over a $6 billion Venezuelan company and handed it over to corporate America, theft.

Trump openly talked of reneging on Chinese debt during his election campaign.

You trust the Americans to give you your money back?

 

[Michael Corleone]

Guaranteed by the State? The collapse of the dollar in the 60's (?) was caused by the US treasury lying to dollar holders, they were printing more dollars than they had gold in stock. This was basically fraud.

The US has just taken over a $6 billion Venezuelan company and handed it over to corporate America, theft.

Trump openly talked of reneging on Chinese debt during his election campaign.

You trust the Americans to give you your money back?

That’s in the 30s I believe. Dollar had been lifted from gold standard long ago. It’s a sham currency that’s been international because of bullying. The banks have unlimited rights to print but the debtors pay interest on money that technically doesn’t exist, and once the debt is paid and that digital currency becomes real... who balances for inflation? The people... by paying taxes.
China and Russia needs to collaborate on an alternative currency, since euro failed to challenge petrodollar hegemony
Well China is not tied to US for getting the money back... one advantage of treasuries is that they can be dumped whenever China wishes, right now dumping would have minimal effect and i guess that’s why China is increasingly buying these even during the pandemic. They’ve got over 1 trillion
American debt is around 13... I reckon by the time China reaches military parity with US and the eventual war happens, China will dump

 

[jamal18]

That’s in the 30s I believe. Dollar has been lifted from gold standard long ago. It’s a sham currency that’s been international because of bullying. The banks have unlimited rights to print but the debtors pay interest on money that technically doesn’t exist, and once the debt is paid and that digital currency becomes real... who balances for inflation? The people... by paying taxes.
China and Russia needs to collaborate on an alternative currency, since euro failed to challenge petrodollar hegemony
Well China is not tied to US for getting the money back... one advantage of treasuries is that they can be dumped whenever China wishes, right now dumping would have minimal effect and i guess that’s why China is increasingly buying these even during the pandemic. They’ve got over 1 trillion
American debt is around 13... I reckon by the time China reaches military parity with US and the eventual war happens, China will dump

The price of bonds will fall, and you can only sell if their is a buyer. I have a feeling that this will not end well for china.

I rmember a historian who said that the dollar era began with Hiroshima.

 

[Feng Leng]

The price of bonds will fall, and you can only sell if their is a buyer. I have a feeling that this will not end well for china.

I rmember a historian who said that the dollar era began with Hiroshima.

LOL you can stop buying new ones after the old ones are repaid

 

[Michael Corleone]

The price of bonds will fall, and you can only sell if their is a buyer. I have a feeling that this will not end well for china.

I rmember a historian who said that the dollar era began with Hiroshima.

US will bully the British and the Europeans to pay up, if Europeans don’t I’m sure the British would to counter China. So would india, Japan and other US aligned states

 

[Feng Leng]

US will bully the British and the Europeans to pay up, if Europeans don’t I’m sure the British would to counter China. So would india, Japan and other US aligned states

In the end, only the "free" nations will be under the jackboot of US dollar hegemony while everybody else is liberated from it

 

[Michael Corleone]

In the end, only the "free" nations will be under the jackboot of US dollar hegemony while everybody else is liberated from it

Too early to tell... China needs to do its job properly