China has just dumped its biggest load of United States treasuries in 8 months. China’s share of US Treasuries holdings had the highest decline since January back in September, as the ongoing and ever-increasing trade tensions with Washington forced the world’s biggest economy to take measures to stabilize its national currency.
And in order to stabilize their own currency, the Chinese will take shots at the U.S. dollar. Although the country is still the biggest foreign holder of the U.S. foreign debt, China has slashed it’s share by nearly $14 billion, with the country’s holdings falling to $1.15 trillion from nearly $1.17 trillion in August, according to the latest data from the Treasury Department. The fall marks the fourth straight month of declines, according to a report by RT. China is followed Japan’s lead, as their share of U.S. Treasuries fell to $1.03 trillion, the lowest since October of 2011.
Other nations are divesting from the dollar as well making the U.S.’s currency highly unstable. China’s purchase of U.S. has fallen as the U.S. continues to borrow increasingly more money. And with a newly divided Congress, it doesn’t look like the deficit will decrease anytime soon and the trade war is likely to
This latest drop in purchases of U.S. debt comes on top of the escalating trade conflict between Beijing and Washington over a trade imbalance, market access, and alleged stealing of U.S. technology secrets by Chinese corporations. So far, the US has imposed tariffs on $200 billion of Chinese goods and Beijing retaliated with tariffs on $60 billion of US goods and stopped buying American crude. But if a deal is not reached, tariffs will rise sharply, to 25% in January.
The ever-increasing national debt, and inflation, coupled with the trade war Americans are already paying for could put untold pressure on an already unstable economy.
As we inch toward the first of the year, Americans will be forced to fork over even more cash to cover the political whims of the ruling class. Absent a deal between Trump and Chinese leader Xi Jinping, who are expected to attend a G20 summit this month in Buenos Aires, the recently introduced 10 percent tariffs on $200 billion of Chinese goods will be raised to 25 percent. Additionally, the Trump administration may place other tariffs on the remaining $250 billion-or-so of Chinese products which escaped the initial rounds. –SHTFPlan
On Friday, president Donald Trump said he would leave out “four or five” of the big items the U.S. wants from the trade war negotiations. “China wants to make a deal. They sent a list of things they are willing to do, which is a large list and it is just not acceptable to me yet. But at some point I think that we are doing extremely well with respect to China,” Trump told reporters. according to RT.
If you didn’t export your manufacturing, didn’t spend in unnecessary military endeavors and generally scam the global economy such things wouldn’t matter.
Somebody bought those treasury bonds at a discount on the secondary market. Someone made good money off the deal. Didn’t cost the US anything.
The U.S. military should have taken out the Chinese military and government long, long ago.
Now look where we’re at.
MacArthur requested (6) atomic bombs during the start of N. Korean (Chinese) aggression prior to the Korean War….He said I’ll put an and to China for 100 years, else we face a serious threat in the future. He was right.!!!!
If we played by book and kept a close eye on Israeli influence on our policy and elections, if we did what is best for us and not put Israeli interests ahead of ours, we would have remained in a commanding position with strong economy and strong dollar. But we squandered all our intellect and goodwill, promoted Greater Israel project to our own detriment and now whine about corporate heist of our manufacturing sector to other more profitable areas of the globe! As you can see from comments above, not many bright bulbs shing our living room lol
China supplies goods to the United States. In return, it receives paper in the form of a US dollar. Now there is still a desire to give paper 10% less per product. How will this business end?
Wo w it went from 1.17 trillion to 1.15 trillion ?
Quit wasting our time.