China Debt Sale Fails for Third Time This Year as Cash Crunch Curbs Demand

Source

China’s finance ministry failed to sell all of the debt offered at an auction for the third time this year as a cash crunch damped demand from banks.

The ministry sold 11.76 billion yuan ($1.82 billion) of 182-day bills, falling short of its 15 billion yuan target, according to traders at financing companies required to bid at the auctions. The seven-day repurchase rate, which measures interbank funding availability, has almost doubled in the past month to 6.25 percent after the central bank pushed lenders’ reserve-requirement ratios to a record 21.5 percent on June 14.

Does this mean peak debt for everybody? Greece, Italy, Spain, US. It does beg a question. Indebted.. to who?
Well, on the upside, it turns out china is not really that much of a threat for the united states is it?

I am going to assume, they will attempt to collect what the US owes them in order to pay theirs down. As the US and China goes, so goes most of the worlds market pretty much.

reply to post by tnhiker


Not if the US defaulted first. This is more serious than I thought. It's starting to dawn on me the possibility of a domino effect, the house of cards finally falling apart.

True. The US has what, two weeks left? And all that is going on is both sides not understanding the word "compromise".

reply to post by tnhiker


August 3rd. This people playing chicken with the US economy and ultimately the world's. Maybe they're mad, unless this is planned in advanced, then the US will defaulted on purpose.

you know whats great. I read that in the month ending August, the US Treasury will need to roll over $474 billion in T bills. PLUS the Treasury will need to pay back the 300 Billion it stole from the Federal Pension fund. PLUS its normal $150 Billion expense.

So when the debt limet gets rased. The Treasury will have to sale almost a trillion dollers in T bills for the month ending in August. sweet huh

How do so many people deep in debt buy other people's debt?

China and USA are the two greatest consumers in the world. If they go down you betcha a riot will gonna occur in the socialist paradises *cough*Germany and Japan*cough* that depend on trading with them. Mass chaos would occur. Ooh, I wanna see that.