Wednesday, October 17, 2012

China Continues To Boycott Treasurys As Japan Prepares To Become Largest Foreign Holder Of US Paper

As mentioned many times, the trajectories of the U.S. treasury holdings by the East Asian countries have been important economically and politically.  The mainstream media rarely discusses this.

From Zero Hedge:

Where there were notable developments in today's TIC report, was in the composition of buyers of US paper, which showed that for yet another month, there has been virtually no buying interest in US paper by the biggest non-Fed holder: China, whose total TSY holdings were $1,154 billion, down $12 billion since the beginning of the year, and down a whopping $125 billion from a year ago. Ironically that other massively indebted country, Japan, which has Y1 quadrillion in its own public debt to deal with, for a debt/GDP ratio will above 200%, continues to load up on US paper, as the biggest paper ponzi scheme continues going ever higher and nothing possibly can get in the way. In fact, as the chart below shows, the difference between total Chinese and Japanese holdings has declined to a record low $32 billion, and will likely see Japan surpass China as the biggest holder of US paper very soon. 

http://www.zerohedge.com/news/2012-10-16/china-continues-boycott-treasurys-japan-prepares-become-largest-foreign-holder-us-pa

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