China to replace Fed buying USTs?

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#1 Wed, Jun 15, 2011 - 10:04am
agauinvest
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China to replace Fed buying USTs?

Hard to believe, but it looks like China is taking up the slack, even before the end of QE2? Posted for thoughts as to why they are buying.

https://finance.yahoo.com/news/China-increases-holdings-of-apf-166483999...

Edited by: agauinvest on Nov 8, 2014 - 5:07am
Wed, Jun 15, 2011 - 10:33am
tmosley
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Not much of a bump.  Not sure

Not much of a bump. Not sure I would read too much into it.

Wed, Jun 15, 2011 - 10:35am (Reply to #2)
caramel
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yeah, that's about a day's

yeah, that's about a day's worth of POMO. Would need to see a much higher month over month increase.

Wed, Jun 15, 2011 - 11:04am
agauinvest
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But that's the amount of the

But that's the amount of the increase, and would imply expiring treasuries would also have been replaced, which would figure into the total purchases, right?

Wed, Jun 15, 2011 - 11:16am
Shill
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Fed buys $4.7 billion in Treasury debt - MarketWatch

And I will strike down upon thee with great vengeance and furious anger those who attempt to poison and destroy my brothers.
Wed, Jun 15, 2011 - 11:17am (Reply to #4)
caramel
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good point.  

good point.

Wed, Jun 15, 2011 - 2:45pm
Cleburne61
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Peter Schiff makes the point

Peter Schiff makes the point that they'd have to purchase another 5 trillion of treasuries over the next 3 years or so with the rate our government spends...

The commentators all say "China is trapped, they've got 1 trillion in treasuries...they have to keep buying or they'll lose hundreds of billions".

Peter says, "If you were China, would you take your loss on 1 trillion....or a loss on 5 trillion in 3 to 5 years?" 

I believe, when the time is right, they'll cut their losses and run. Wouldn't you?

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