Where's Alfred E. Newman? What Me Worry? China Cashes Out Of U.S. T-Bills

[twyacht]

So China has cashed out 97% of U.S T-Bills....Because they are worried about default, debt ratio, collapse of the dollar, inflation, etc,...

http://cnsnews.com/news/article/china-has-divested-97-percent-its-holdin

Just like any other investor would. So that leaves NO ONE except the Fed, to fund our debt,; Which is called monetizing the debt, which they said they would NEVER do. What me worry?



BHO's "quantitative easing" ,aka,...just print more money plan is failing...Gee,....How's that hopey changy thing workin'??


...Some of the comments are funny. Which one of you posted "Time to buy another 1000rds."?

[tt11758]

So China has cashed out 97% of U.S T-Bills....Because they are worried about default, debt ratio, collapse of the dollar, inflation, etc,...

http://cnsnews.com/news/article/china-has-divested-97-percent-its-holdin

Just like any other investor would. So that leaves NO ONE except the Fed, to fund our debt,; Which is called monetizing the debt, which they said they would NEVER do. What me worry?



BHO's "quantitative easing" ,aka,...just print more money plan is failing...Gee,....How's that hopey changy thing workin' who could've possibly seen THAT coming??


...Some of the comments are funny. Which one of you posted "Time to buy another 1000rds."?

FIFY

[fullautovalmet76]

I saw this on Drudge and thought about the implications too. We can talk about Obama's failed fiscal policies but we would be remiss if we also didn't highlight what's going on in the house. If you caught this in the news, John Boehner told Obama that he would not support raising the debt ceiling unless Obama agreed to more spending cuts. What!? 

How about NOT raising the debt ceiling at all and we start cutting spending at least back to where we were in 2008?

[fightingquaker13]

You know, I remember back a few years ago when I thought it was alarming that the Chinese were buying up our T bills to finance our debt. This gave them political leverage that they used well. Who'd have thought those were the good old days? How much scarier is it when the Chinese are selling T bills, political concerns be damned, because they don't want to hold worthless paper?
FQ13 who wishes to God he'd put every penny into a safe deposit box full of Euros back when they first came out and were 1-1 with the dollar. I'd have made 50% and still had liquid currency. I don't even want to think about gold and silver prices.

[tombogan03884]

You know, I remember back a few years ago when I thought it was alarming that the Chinese were buying up our T bills to finance our debt. This gave them political leverage that they used well. Who'd have thought those were the good old days? How much scarier is it when the Chinese are selling T bills, political concerns be damned, because they don't want to hold worthless paper?
FQ13 who wishes to God he'd put every penny into a safe deposit box full of Euros back when they first came out and were 1-1 with the dollar. I'd have made 50% and still had liquid currency. I don't even want to think about gold and silver prices.

You would have lost your shirt, nothing to do with the "value", several countries have had problems with dissolving bills.
It seems that Euro notes that come into contact with several varieties of drugs such as Cocaine or Meth begin to disintegrate, and the effect is passed on to bills in contact with the effected bills.
If just one or two bills were contaminated you could have wound up with a safe deposit box full of expensive, worthless  dust.   

[Sponsor]

[Pathfinder]

Besides, euros et al. are all fiat currency, including the Chinese yuan. All will fail, so if you have a gun safe full of any modern currency, it will fail. Period.

Again, look up the bancor - invented as a concept by Keynes, and quite possibly where we are headed after the collapse - which will make everyone who sold short tons of wealth.

My first thought on reading this was - boy, that didn't take long. Wonder what sucker country China found to buy the trillions in t-bills they once held?

[Solus]

Worked with a guy at my first job out of the Army in the fall of 1968 and he said that each payday, biweekly, he bought $5 worth of silver and put it in a safe deposit box.  I believe $5 would have bought 2 Troy oz. back then.   Wonder if he kept at it....

[Rastus]

..........
Just like any other investor would. So that leaves NO ONE except the Fed, to fund our debt,; Which is called monetizing the debt, which they said they would NEVER do. What me worry?
............

The Chinese are obviously not stupid....gullible maybe because they bought so much debt from a country drunk on spending tomorrow's moeny.  The Chinese still have a lot of our long term debt.  If they chose to, and were prepared for their own consequences at home, they could totally crash our economy overnight by heavily discounting and selling our debt to others.  There are those in their military think tanks that see doing just that as a viable option in the not too distant future.

Monetizing = printing press, i.e. increase is made in the money supply by printing (or adding zeroes to accounts) more dollars.
Increase in money supply means, without expanding economy your $$$'s are worth less because the total value of the country has not increased...but the total number of dollars dividing that value up has increased.
If your $$$ is worth less by government design, is that not a sneaky way to tax people who work or what?

[runstowin]

Can you say Zimbabwean dollar? Sure you can.

The Zimbabwean dollar (sign: $, or Z$ to distinguish it from other dollar-denominated currencies) was the official currency of Zimbabwe from 1980 to 12 April 2009.

Although the dollar was considered to be among the highest valued currency units when it was first introduced in 1980 to replace the Rhodesian dollar at a ratio of 1:1, political turmoil and hyperinflation rapidly eroded the value of the Zimbabwe dollar to eventually become one of the least valued currency units in the world, undergoing three redenominations, and banknote denominations being issued for as high as $100 trillion.[2]

Despite attempts to control inflation by legislation and three separate redenominations in 2006, 2008 and 2009, the use of the dollar as an official currency was effectively abandoned on 12 April 2009. This was a result of the Reserve Bank of Zimbabwe legalizing the use of foreign currencies for transactions in January 2009.[3]

[tombogan03884]

It isn't often I agree with Runstowin, but on this we are in full agreement.