China's Dumping Of The Dollar Has Begun

Discussion in 'Economics' started by observer67, Dec 18, 2009.

  1. China, once a proud holder of United States post-World War II debt, is getting scared.

    For years the People's Republic has bought U.S. Treasuries, eventually becoming the largest holder of U.S. debt ($799 BILLION to be exact!). Those days are long gone, though.

    During 2009, China hasn't been buying many Treasuries and has been unloading dollars in a way that makes Geithner shiver at night.

    And other big U.S. debt carriers like Japan may follow suit if confidence is lost.

    This presentation, courtesy of RBS, takes a deeper look into China's holdings and associated volumes since 2005. Get ready for shock and awe.
  2. Why shoudn't they dump it? i live here and I am dumping it.
  3. ddefina


    We don't need to be in debt to communist--let them sell everything.:eek:
  4. Just plain silly. They're not about to destroy the value of their holdings by throwing it on to a market that cannot absorb it. The best they can do is trickle out and slow down the buying - which they've been trying to do for the last year and a half.
  5. The American people need to ask themselves whom their country belongs... :)

    OTOH, all Empires went thru this cycle... for example the Roman Empire,
    or the Ottoman Empire where WWI postwar treaties dissolved the empire...
    BTW, Britain played a major role in this shameful historical act.
  6. RBS wrote this? Is it the same RBS that is owned by the UK taxpayer?

    Come on, these guys are jokers.

    If anything, China has been buying dollars in the last few days and dumping Greek bonds.

    Don't fight the trend, go long dollar.
  7. The long term trend is down for the $..
  8. long term trend may be down, but currently upside potential of the dollar is around 20% whereas downside potential is very limited. Good luck with the long term trend.
  9. Do you care to explain why we should be long in USD?
  10. That was an incredibly unimpressive and uninformed article.
    #10     Dec 20, 2009