What Happens If China Dumps Us Bonds

The US bond market seems a relative haven of security right now, bolstered by low interest rates, supportive central bank policies and flight-to-quality flows into US Treasuries. dollar’s reign as the world reserve currency comes to an end? The demise of the dollar will also bring radical changes to the American lifestyle. By Terry Connelly It is one of life’s paradoxes that whenever anyone does something that appears to be fundamentally stupid, common experience tells us that there probably is a good reason! This. This is not the moment to dump your stocks. The stock market is a complex animal. Even a long-term pause in Chinese bond purchases could become problematic for the US as it dumps billions of dollars of additional Treasurys on the market in order to fund ballooning deficits. The Chinese were the biggest external investor holding Fannie and Freddie securities, so the Chinese were very, very concerned. Navy Federal Credit Union is an armed forces bank serving the Navy, Army, Marine Corps, Air Force, Coast Guard, veterans, DoD & their families. That would hurt the US economy, as I've written about before. But the crucial point, which Mr. How would the sale of dollar assets affect the US economy? China holds considerable amounts of US debt. "US stocks fell as investors sold stock in companies and moved it into bonds. 32 trillion in late 2013. Treasury securities in October - the biggest seller for the month - bringing its total holdings to $1. That means if it happens once in a hospital, it probably happens many times. Treasury bonds. Book airline tickets and MileagePlus award tickets to worldwide destinations. Many pumpers and conspiracy theorists are voicing the notion that China will take the ‘nuclear’ option and dump its holding of US Treasuries estimated currently to be worth around $1 trillion. 28 trillion and $1. The same way you would get cash back after selling shares in a stock, bond, or mutual fund, countries get cash back when they liquidate their U. Air Canada made a surprise announcement Thursday morning, stating that it will part ways with Aimia Inc. debt, things could. This week, the editor-in-chief of the Global Times, a state-aligned Chinese tabloid, said Chinese scholars were looking into the possibility of China dumping US Treasuries. as reducing pollution we as Americas can strive for a better future. 14 trillion in U. You decide to put some money into mutual funds that invest in stocks and the rest into mutual funds that invest in bonds, or fixed income investments. 51 trillion, while, at the end of January 2016, they stood at US$3. Don’t buy into the VERY fake news media and “deep state” strategy: pump, dump and blame the next credit crisis entirely on Donald Trump. While we admit that "suddenly" is not exactly the right word to describe China's selling of US Treasurys, which has been steadily liquidating its UST reserves over the past two years, something changed today, when in a violent move starting around the time of the Trump election was guaranteed after midnight, the offshore Yuan, the CNH, has been a one way street of non-stop selling, indicative. This makes the lower rates on old bonds less attractive. What could happen if China uses its 'nuclear option' in the trade war looking into the possibility of China dumping US Treasurys. The total number of countries having local manufacturing facilities has diminished from 30-40 to essentially USA, EU, Japan, China, Brazil and India. Since then, however, China has been reducing its holdings of US debt. 18 trillion holding. Xero connects you to all things business. If China wants to try and strongarm the US the US can simply devalue the Chinese bonds as the entire Chinese marketplace is not integrated with the rest of the world in any meaningful way. 9-trillion US Treasuries market. Shale Oil Company Stupidity. The End of Free-Trade Globalization the computer industry adheres to its own exit-to-China strategy for dumping US workers. Theoretically, if China were to dump this debt onto the market, US bond prices would drop and force the government to. But the biggest selling culprit was not “good friend” China who saw a small $5. Treasuries, it immediately results in a bump in its cash reserves. The US Dollar is likely to plunge if China deploys the “nuclear option” in its trade war with the US, selling its Treasury bond holdings. China tried to slow the fall of the dollar by increasing its holdings in U. That is not going to happen. What could happen if China uses its 'nuclear option' in the trade war looking into the possibility of China dumping US Treasurys. Webcast Q&A enforcement in the United States. 5bn) worth of US government bonds in December, raising fears that ­Beijing is using its financial ­muscle to signal that it has lost confidence in American economic policy. By Terry Connelly It is one of life’s paradoxes that whenever anyone does something that appears to be fundamentally stupid, common experience tells us that there probably is a good reason! This. Last Thursday, the United States have formalized to the World Trade Organization (WTO) its opposition to China’s request to be recognized as a “market economy”. The loan growth in the country is slowing, something we will hear when the big banks start reporting on Friday. Who will buy the Treasury bonds that, ultimately, no one may want? Why we will, of course! I challenge you to think about that for a few minutes. Jay Sivapalan, Janus Henderson: Donald Trump won’t get re-elected and the world will break into two economic trading blocs, ones that trade with China and ones that trade with a US alliance. China’s action in dumping treasury bonds at a slow but steady rate makes good economic sense for China. Treasury bonds. A devaluation is another matter. China Dumping US Debt: Why & Does it Really Matter? China is the largest foreign holder of US Treasury debt and has been for a number of years. But if you happen to own oil stocks, the answer is a resounding no. The $2 Trillion China proposes to dump is equal to the amount of dollars the US Federal Reserve has been printing during QE. That's how the $'s come home, but as long as there is a deficit out there, by definition, China can't dump US treasuries. Paul Krugman inches toward MMT. 2 billion to a record $1. To make the most of the stock market today, you have to have the latest market news and information. Will It Happen? June 18, 2019 admin Forex News Comments Off on US Dollar May Sink if China Dumps Treasury Bonds. But what is likely the take home message for non-Chinese readers from all of this, is that while there has been latent speculation over the years that China will dump US treasuries voluntarily. Will China Dump U. Anti-dumping and Countervailing duties (ADCVD) can be a confusing part of the importing process especially if you haven’t had to deal with them in the past. Saudi's are pretty far down the line. Moscow's big sell-off reportedly was not so crucial for the $14. Meanwhile, Washington has been reminded of China’s century-old bonds incurred before the nation adopted communism, which, adjusted for inflation, interest and other fees, amount to around $1 trillion, perfectly covering Beijing’s holdings of US Treasury Bills. Surely Moscow could have sold off bonds more slowly and gotten a better price for them — so why dump them all at once? Was it to test what happens, for its benefit and China's? As Trade Wars began, the rest of the world dumped more Treasuries in April than in any month since January 2016…. This cycle appears now to be over. The bottom line is that since China has become a net seller of Treasuries, liquidity has dried up. dollar’s reign as the world reserve currency comes to an end? The demise of the dollar will also bring radical changes to the American lifestyle. You look at the volume, Katherine, look at the volume," said Cramer. May 13, 2019 · If China Sells Its U. 13 trillion worth as of February 2019, and should they sell them, economists say that could cause a ripple effect in the U. Flooding the market with treasuries would push down US bond prices and cause the yields to spike. He’s particularly targeted China for competitively devaluing its currency, the yuan, to dump cheap exports into the US. 3 billion to $1. At that point, short of dabbling in the possibility mutually assured economic destruction, whereby the Chinese could dump US bonds if America were to threaten high tariffs on Chinese goods, or. That has been reversed. government bonds. Apr 05, 2018 · China could dump its $1. commonwealth’s 3. Moscow's big sell-off reportedly was not so crucial for the $14. Russia fell to 22nd place on a list of major foreign holders of US securities. Treasury market, due to its enormous size, was one of the few places that China could recycle its surplus greenbacks without disrupting the market. But what is likely the take home message for non-Chinese readers from all of this, is that while there has been latent speculation over the years that China will dump US treasuries voluntarily. The Government of China is holding U. to worry about if. And change it must, for our debt is unpayable. China has built factories and economic infrastructure all over South America, Africa, and Asia for many years. A bigger question is what happens to the US securities market if China decides to follow suit and pull out its $1. This doesn't strike me as a policy Beijing is likely to pursue hotly, and Washington would certainly not be opposed to it. Treasuries would, in effect, flood the bond market, which would impact the U. “I don’t think the Chinese are going to do that. US debt may no longer be a good investment, at least for now. The $2 Trillion China proposes to dump is equal to the amount of dollars the US Federal Reserve has been printing during QE. 1 Zero Hedge, China's Record Dumping of US Treasuries Leaves Goldman Speechless, Submitted by Tyler Durden, 7/21/15. According to the Brazilian Steel Institute (IABr) and the Brazilian Foreign Trade Association (AEB), possible anti-dumping measures could further hamper an industry that relies on exports to grow, since the economic recession in the last few years has. borrowing rates soaring. Editor’s Note: I have been traveling the last few days, so I will reprint two of the more interesting articles I ran across in the last week. In an attempt to better manage its debt of over 1 trillion ringgit, Malaysia has also cancelled or delayed several infrastructure megaprojects, including the High Speed Rail between Singapore and Malaysia, and several China-backed gas pipeline projects. House of Representatives has announced they are going to cancel the continued development of the James Webb Space Telescope. I read today that if China where to sell US debt, treasury bills (1. What If China Dumps US Treasury Bonds? Please, give me one coherent explanation of how that could happen. You can hold Treasury bonds until they mature or sell them before they mature. China has become the largest economy in the world, outpacing the United States and the European Union. the BRICS and other emerging market nations have been dumping euros assiduously because. Currency intervention, also known as foreign exchange market intervention or currency manipulation, is a monetary policy operation. Chronology of a Trump Dump Donald Trump announces on June 16, 2015 , he is running for President -Mexican Treasury Holdings stand at $86. The uncertainty in markets has pressured investors to dump equities and seek safety in U. This usually happens anyway as the business cycle comes to a close. currency and Treasury notes in a $1. Dumping Treasuries poses too many risks, including a global recession. In conclusion, we asked if anyone else was set to join China in liquidating US Treasurys at a never before seen pace. For those trying to plan for major purposes, that's comforting. Supposedly Uncle Sam is at the mercy of the Chinese, who have a stranglehold on the supply of dollars necessary to keep the US government above water. Its main function is to ensure that global trade flows smoothly, predictably and freely as possible. Peter Ford/The Christian Science Monitor. Therefore, they ditch shorter-term government securities (more notably, the 3-month T-Bills) for longer-term government bonds (more notably, the 10-Year T-Bonds) to hedge, hence. All those dollars in foreign accounts will come home,. But the global bond industry with its traditional headquarters in. debt even before this latest crisis. 32 trillion and that its foreign exchange. In order to understand why Anti-dumping and Countervailing duties may apply to your goods, we must begin with understanding what they are and how they protect the United States economy. For the first time, Puerto Rico missed a bond payment Saturday, a major setback for the U. This would happen as the Treasury is already flooding the market with new debt to finance the Trump tax cuts, which is why some analysts think the United States is unusually vulnerable to a Treasury rout. 18 trillion holding. This is all paradoxical because now is when we need forced contraction of the U. China currently owns $1. China still remains the biggest foreign holder of US Treasuries, however, followed by long-time US ally Japan. Don’t Dump Your Long-Term Investment Plan Over Trump’s Victory Jonathan Chevreau | November 16, 2016 Will the Trump rally continue until the president-elect is sworn in in January?. The last two times China tried to devalue its currency, August 2015 and December 2015, U. Such dramatic action is however unlikely as China would become a major loser in the process. -China Relations Getting. The bottom line is that since China has become a net seller of Treasuries, liquidity has dried up. 2 trillion dollars in US bonds. The smallest prize is £25. 3:40 - If China sells its U. That is called "monetizing the debt", and it is bad. There is concern that US bond yields will increase if more foreign investors sell their holdings. " China Construction Bank and other banks had. 3 billion in January and has sunk to 16th place of the largest holders of American debt. The country remains the biggest US creditor. One fear has been that, should China and the United States engage in an economic war — as they clearly are. financial system. Paul Krugman inches toward MMT. Global interest rates rose today, hurting bonds, as problems in Greece and China appeared to get better. yields are. Why China Can't Dump U. A: Russia has sold all but $15 billion in US Treasuries without any affect upon the dollar or bond sales. A bigger question is what happens to the US securities market if China decides to follow suit and pull out its $1. As I mentioned yesterday, China literally has hundreds of different ways that they can hurt us. Jan 16, 2014 · Bipartisan anti-China hysteria is picking up on news the Asian giant's holdings of U. And when that happens, the dollar is almost certain to rapidly lose its purchasing power, leading to a global currency reset and a far higher dollar price for gold. debt with Treasuries worth about $1. 69 billion in March 2011, the most recent month reported by the U. China has recently been intervening in the foreign exchange market to prevent the yuan from strengthening. 23 trillion. But it cannot do so without tanking the value of its own reserves. While Taiwan is a pinprick in size compared to China, an offensive capability is the only way to set back China's invasion plans. All your favorite music, podcasts, and radio stations available for free. Treasury officials and politicians, who know that the country only holds about one-tenth of the T-bills owned by China, which has the most of any country, $1. Turmoil would ensue if China started dumping US Treasury securities. This would happen as the Treasury. If they dumped them quickly, the value of the treasury bonds would drop just as quickly and the remaining Chinese holdings of treasury bonds would drop precipitously as well. Feb 19, 2015 · The People's Bank of China responded in November of 2013 by announcing it was ending its purchase of U. Does China have a chain around America's neck because it owns so much U. The $2 Trillion China proposes to dump is equal to the amount of dollars the US Federal Reserve has been printing during QE. Moscow's big sell-off reportedly was not so crucial for the $14. 165 trillion worth of U. In addition, even if it did cause market volatility, China’s remaining holdings would also be hurt, which the Chinese may view as a move that is too risky. Jay Sivapalan, Janus Henderson: Donald Trump won’t get re-elected and the world will break into two economic trading blocs, ones that trade with China and ones that trade with a US alliance. Falling Chinese demand has sent prices plunging for all manner of commodities — iron, copper, oil. Experience millions of the world’s best magazines and catalogs, all for free, in Issuu’s. China Dumping US Debt: Why & Does it Really Matter? China is the largest foreign holder of US Treasury debt and has been for a number of years. “Now as China reduces its trade deficit with the US, the likelihood of them reducing their need for US Treasuries is large,” Fink told CNBC on February 24. China then sold $48 billion in US Treasury bonds in the month of January; American interest rates jumped-up, and the yuan weakened by 5 percent. Before they sold these, they devalued their yuan by about 5% which is the same thing as making their dollar holdings worth 5% more in yuan …so they increased their sale by the equivalent of $5 billion!. China needs this growth to raise its low standard of living. stock markets crashed by over 11% in a matter of a few weeks. Selling off your US bonds is one thing, but dumping your entire stock in the space of two months? Last month we showed that as Trade Wars began in April, the world's central banks and other official institutions dumped more Treasuries than in any month since January 2016, some $48. government debt, which has led to an inversion of the yield curve between three-month bills and 10-year. Oil prices did something abnormal on Wednesday: West Texas crude rose 2. The year 2019 has been a stable year for the rupee that depreciated by just about 1. What will happen if the U. Between March and May, Russia's holdings of US Treasury bonds plummeted by $81 billion, representing 84% of its total. Stay on top of current and historical data relating to United States 10-Year Bond Yield. Treasury securities, respectively, as of July 2013, according to U. Treasuries?. We got no information on what China will do to rein in. That’s where China will strike back. After a crash, the greater the link to the US dollar, the greater the loss of economic freedom, although, in most such countries, the government is likely to be less efficient than in the US, which would work in favour of the individual. Most of us don’t think twice about where our waste goes, but in the two poorest areas of the West Bank, garbage has become a public health problem. Don’t Dump Your Long-Term Investment Plan Over Trump’s Victory Jonathan Chevreau | November 16, 2016 Will the Trump rally continue until the president-elect is sworn in in January?. A huge portion of these bonds are bought by American investors and companies, however some of them are also purchased by foreign governments and China happens to have purchased A LOT of them. Treasury bills, decreasing its ownership of the short-term U. Treasury bonds. For those trying to plan for major purposes, that's comforting. The Chinese have been dumping these U. Or to put it another way, the Chinese government owned $1. Financial adjustments will be made but it is the influence loss that will hurt. The value of a US dollar denominated bond dropped since last week to 58 cents on the dollar, from 77 cents. Almost Everything Donald Trump Says About Trade With China Is Wrong each device imported into the United States from China accounts for and it’s a very common result of U. The United States has flirted with trade disputes with just about every one of our trade partners; Mexico, Canada and even the European Union. Re: Pimco Dumps US Debt. 5 trillion in FX reserves (i. Chronology of a Trump Dump Donald Trump announces on June 16, 2015 , he is running for President -Mexican Treasury Holdings stand at $86. , not what will happen. interest rates by about 1%. If the other EMs join China in liquidating the combined $7. Global interest rates rose today, hurting bonds, as problems in Greece and China appeared to get better. The body of the article uses that word "weaponise" (British spelling). What If China Sold Trillions In U. The assumption was that demand from places like China would continue to soar exponentially. US Treasury bonds they’ve gone from about 91 billion down to 14 billion in about two and a half to three months remember several months ago China was doing the same thing now China has gone back in and purchased more US Treasury bonds leaving China and Japan being two of the largest holder of US Treasury. Treasurys in retaliation over trade because there's plenty of demand for U. Not Exactly Bond for Glory Away from stocks, green paper saw a bounce, along with both bonds and stocks early on, with bonds continuing aggressively higher as stocks weakened. In April, Russia alone managed to sell half of its U. bond prices also would bring down the value of China. Treasuries. Their absence in the future, more than any proclamation by any credit rating agency will be the real downgrade that awaits the U. China Quietly Dumps Bonds Fear of foreigners dumping U. Or to put it another way, the Chinese government owned $1. Will It Happen? - The US-China trade war is a fundamental headwind that is continuing to blow the sails of the global economy increasingly closer to a rocky coastline. Shedlock details the possibility of China dropping US Tresuries. Save documents, spreadsheets, and presentations online, in OneDrive. But where China really won the negotiation was when the United States folded and agreed to suspend “trade tariffs. Since 2013, a total of 101 Chinese companies have listed on American exchanges, raising about US$46. Debt? Bond Market Turmoil Sparks Fear of MASSIVE SELLOFF! China And The US Boom Bust 49,224 views. RD, by email. If China wanted to dump dollar, I think they really wanted to do that in the first place. How would the sale of dollar assets affect the US economy? China holds considerable amounts of US debt. A fall in U. adversaries that the U. 165 trillion worth of U. Advertisement The bond market is acting like a recession is. 14 trillion in U. Treasury securities in October - the biggest seller for the month - bringing its total holdings to $1. Jan 10, 2016 · Whatever happens in China, the chances are remote the country will dump its U. We have many dots and lots of data points to help us but first it needs to be pointed out, even if wrong in conclusion …just the knowledge alone that "something changed" is enough. It’s the same for our economy, but our policy makers just don’t get it. However, according to The South China Morning Post, China has its own "range of financial firepower at its disposal to punish the US" for the tariffs war, including its massive $1. China will soon inaugurate the 350-metre-high Lotus Tower in Sri Lanka, the tallest and most sophisticated telecommunication-skyscraper in South Asia. Treasury officials and politicians, who know that the country only holds about one-tenth of the T-bills owned by China, which has the most of any country, $1. We got no information on what China will do to rein in. May 13, 2019 · Flags fly atop the Great Hall of the People in Beijing, China, on Wednesday, March 6, 2019. But it cannot do so without tanking the value of its own reserves. The sweet. terrorist sue the Saudi government Abandon the dollar Observers Saudi economists said that the establishment of a system of direct exchange rates between the currencies of the Chinese yuan and the Saudi riyal Index for China's purchase of Saudi oil in its own currency in the future, while the US dollar will be affected by this. Chinese cheaters? How China dominates solar. Treasury bonds — is selling. government bond prices would. That is called "monetizing the debt", and it is bad. Russia fell to 22nd place on a list of major foreign holders of US securities. , we import more than we export, and conveniently the. / Headlines / World News / Dry Run In Preparation For China? Russia Again Dumps US Bonds (Now Nearly ALL Its Treasuries) would happen if/when China also starts to. They enacted a new policy: they call it the “Green Fence. China owns a lot of this type of bonds. debt has been to shore up the flailing Yuan. A bigger question is what happens to the US securities market if China decides to follow suit and pull out its $1. The loan growth in the country is slowing, something we will hear when the big banks start reporting on Friday. Shipments of waste to the repository resumed in April 2017 for the first time since a 2014 radiation release contaminated part of the facility. If you want to get some idea of what might happen, imagine a neighborhood in which one third of all the houses suddenly went on sale. federal budget. 799bn reduction in its Treasury holdings in April… And while “Great ally” Japan did dump Treasuries for the 8th month in the last 9 to it lowest holdings since Oct 2011… It was Vladimir. China puts up a green wall to US trash US recyclers are nervous about losing their largest market after China began enforcing new environmental laws this year. I expect tomorrow could be just as bad if not worse than today was. Russia fell to 22nd place on a list of major foreign holders of US securities. But what is likely the take home message for non-Chinese readers from all of this, is that while there has been latent speculation over the years that China will dump US treasuries voluntarily. Here's the answer and what it means for the US economy and monetary policy going forward. World Dumping US Debt & Hoarding Gold: De. China Dumping US Debt: Why & Does it Really Matter? China is the largest foreign holder of US Treasury debt and has been for a number of years. 029 trillion in August, the lowest since October 2011. China then sold $48 billion in US Treasury bonds in the month of January; American interest rates jumped-up, and the yuan weakened by 5 percent. 16 trillion in US debt (US government treasury bonds). China's US$1. Treasury bonds. The tower, emanating from the Lotus Sutra in Buddhism, is a narrative for Beijing to formulate a sustainable and peaceful “soft power” strategy. Buying gold and dumping stocks is a no-brainer this summer so will the world’s largest gold consumer China be next? Plus, if US stock markets do have a major correction then gold’s. Advertisement The bond market is acting like a recession is. S owes China a lot of money". to worry about if. If US debt was sold, wouldn't we just owe the buyers of the debt the debt payments? What would actually happen, if China offloaded US debt? Thanks. Dumping Treasuries poses too many risks, including a global recession. China claimed they were not "dumping the dollar" on purpose. Our deficit hysterians love to raise the specter of China. Luckily, it's highly unlikely to happen because a Treasurys dump would hurt the US, China, and the world, in that order. The ECB and BOJ, who work in lock step with the Fed, will step in and swap euros and yen for US dollars to the tune of $500 billion. China is the largest holder of US Treasury bonds, and Wall Street figured that without its demand the price of bonds could fall — thus Wednesday's market action. has slowed in recent years, and both countries need fundamental changes in their economic models in order to get back on track in a sustainable way. That has been shown to be the case throughout U. Jan 10, 2016 · Whatever happens in China, the chances are remote the country will dump its U. Recall that China sold US treasuries to support the Yuan and stop capital flight. On August 5, 2019, the People's Bank of China set the yuan’s daily reference rate below 7 per dollar for the first time in over a decade. needs China to keep buying its debt. The way those $'s come home is China buys U. It’s a huge move for the manager of the world’s largest bond fund. You look at the volume, Katherine, look at the volume," said Cramer. That’s a problem for Beijing, and Trump knows it The US owes China more than $1 trillion and Xi could send America’s economy into a tailspin by sanctioning a dumping of US Treasury bonds. The bonds are worth $1. borrowing rates soaring. China currently holds around $1. This action “would slow but not derail the US recovery. At the time of writing, China still maintains a massive stock of 10-Year US Treasury notes in the amount of approximately $1. Americans alone own $12. Despite its threats, China will continue to be one of the world's largest holders of U. , mostly US Trasurys but also those of Europe and Japan) shown below into an illiquid Treasury bond market where central banks already hold 30% or more of all 10 Year equivalents (the BOJ will own 60% by 2018), then it is debatable whether the mere outflow. Tags: central bank gold buying, central bank gold purchases, China dumps treasury bonds, China gold reserves, china threatens to dump bonds, crack-up boom, Currency Wars, ESF, Exchange Stabilization Fund, Fundamental Analysis, Gold, how much debt does china have, money printing, Paul Eberhart, SD Exclusive, tariffs, trade wars, us china trade. What could happen if China uses its 'nuclear option' in the trade war looking into the possibility of China dumping US Treasurys. US Dollar May Sink if China Dumps Treasury Bonds. securities to $1. Estimated foreign holdings of U. It is the lowest level for the country since February last year. 3 billion in January and has sunk to 16th place of the largest holders of American debt. 33 trillion at the end of 2013. Gross is a billionaire bond veteran and someone who's been quite bullish in the past. We have many dots and lots of data points to help us but first it needs to be pointed out, even if wrong in conclusion …just the knowledge alone that "something changed" is enough. This week, the editor-in-chief of the Global Times, a state-aligned Chinese tabloid, said Chinese scholars were looking into the possibility of China dumping US Treasuries. Treasury bonds dumped on the market was so overwhelming, even the Federal Reserve, with all its massive efforts to buy up bonds, could not stop the avalanche. The president-elect may not care how Canadians feel. dollar as the world’s most important currency. What happens, then, if the US dollar is no longer desired, because it is no longer needed for the oil markets? The dollar gets dumped. The latest blast from Beijing: a call byChina‘s top central banker to dump the U. At the time of writing, China still maintains a massive stock of 10-Year US Treasury notes in the amount of approximately $1. Action would speak loud enough. There is no net supply of dollars from China. You decide to put some money into mutual funds that invest in stocks and the rest into mutual funds that invest in bonds, or fixed income investments. Many see China's accumulation of U. interest rates spiking higher, just when Trump's administration is borrowing more. to raise interest rates. They have been selling bonds for months. If it is not China, it could be another country; or America could simply go broke and no. "It doesn't matter whether you want the markets to rise or fall - they sing to their own tune and if you're not listening to the markets tune your money is at stake" The Hovis Trader. As far as fiat currencies go, those are the best out there. Lindsay Lohan’s father Michael has said that his daughter has a “platonic and respectful relationship” with Saudi Arabia’s crown prince Mohammed bin Salman, following tabloid speculation that the pair were romantically involved. The governments of several countries, including China and the United States, have taken steps to address some of the damage. Beijing is also the largest owner of U. [8] Hillary Clinton received almost 3 million more votes than did Trump. 18 trillion holding. China still remains the biggest foreign holder of US Treasuries, however, followed by long-time US ally Japan. In the wake of speculation that China, which has acquired a huge amount of U. Treasury securities in October - the biggest seller for the month - bringing its total holdings to $1. Real downgrade is when China dumps its Treasuries. 33 trillion at the end of 2013. We can only guess when China will dump the dollar, just as gold buyers could only guess the day and year when gold would reach $850 again, $900, $1,000 and higher, all the while gold bears clamed it would never happen.