H/T to JohnGaltFLA for this article:
China to liquidate holdings of US Treasuries
Only thing that could have been worse is if they announced they were selling them for pennies on the dollar. You think there was an issue with the credit downgrade of America? This is a REAL downgrade as our creditors are voting with their feet and dumping the bonds.
Better grab the clipboard and take inventory down in the ol' food storage area of the bunker.
5 comments:
One Question... If the Chinese are selling, Who is buying them?
Okay- Ernie- please more definition and explanation- in "Becka Terms" pretty please!
what does all this mean?
The key words in that article (IMHO) were “Once the US Treasury market stabilizes we can liquidate more of our holdings of Treasuries,” ...
Personally, I don't know much about the Stock Market or Treasuries so I don't know if/when that stabalization will occur, if at all.
cnichols
The Chinese were the buyers of next-to-last resort. The only buyer left is the Fed (through the printing of money), which means inflation is about to ramp up.
Personally, I'm surprised that inflation isn't already worse than it is.. Of course in my mind that just means that when it does "officially" hit the inital jump will be quick and huge.
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