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U.S. lets China bypass Wall Street for Treasury orders?

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posted on May, 21 2012 @ 03:14 PM
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(Reuters) - China can now bypass Wall Street when buying U.S. government debt and go straight to the U.S. Treasury, in what is the Treasury's first-ever direct relationship with a foreign government, according to documents viewed by Reuters.


Now I do not know what is worse, this bypass operation or the network link that will support it.
After all we are constantly warned of chinese hacking.

Are the FED nuts or......




posted on May, 21 2012 @ 03:16 PM
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Originally posted by komp_uk



(Reuters) - China can now bypass Wall Street when buying U.S. government debt and go straight to the U.S. Treasury, in what is the Treasury's first-ever direct relationship with a foreign government, according to documents viewed by Reuters.


Now I do not know what is worse, this bypass operation or the network link that will support it.
After all we are constantly warned of chinese hacking.

Are the FED nuts or......


How do you think this looks like to other countries? We give the Chinese an advantage over all our so called allies.



posted on May, 21 2012 @ 03:17 PM
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reply to post by komp_uk
 


no worries they just do what they want. what they want is physical conflict by the citizens of the u.s. its all part of the plan.



posted on May, 21 2012 @ 03:17 PM
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More and more news about China buying something here in the States. Reminds me of Japan in the 80's and early 90's and the Canadian hoopla on these threads a couple years ago.

Interesting to say the least. Having a direct route to the Treasury seems a little insane, unless there trying to "cook" the books and get the Chinese to buy in on it.



posted on May, 21 2012 @ 03:19 PM
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The United States has, however, displayed increasing anxiety about China as a cybersecurity threat. The change Treasury officials made to their direct bidding system before allowing access to China was to limit access to the system to a specially designed private network connection controlled by the Treasury.



So they are a threat, so instead of not catering to them you simply design them a private network. Great



posted on May, 21 2012 @ 03:20 PM
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Originally posted by Covertblack

Originally posted by komp_uk



(Reuters) - China can now bypass Wall Street when buying U.S. government debt and go straight to the U.S. Treasury, in what is the Treasury's first-ever direct relationship with a foreign government, according to documents viewed by Reuters.


Now I do not know what is worse, this bypass operation or the network link that will support it.
After all we are constantly warned of chinese hacking.

Are the FED nuts or......


How do you think this looks like to other countries? We give the Chinese an advantage over all our so called allies.


I know, I thought the UK was the middleman in these direct/indirect bidding, I wonder who else will want the same commission free trades? I bet some traders are not happy about their loss of commissions!



posted on May, 21 2012 @ 03:22 PM
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reply to post by komp_uk
 


Japan.


The other central banks, including the Bank of Japan, which has a large appetite for Treasuries, place orders for U.S. debt with major Wall Street banks designated by the government as primary dealers. Those dealers then bid on their behalf at Treasury auctions.



posted on May, 21 2012 @ 03:23 PM
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Originally posted by Covertblack

The United States has, however, displayed increasing anxiety about China as a cybersecurity threat. The change Treasury officials made to their direct bidding system before allowing access to China was to limit access to the system to a specially designed private network connection controlled by the Treasury.



So they are a threat, so instead of not catering to them you simply design them a private network. Great


There must be a link to the real big system otherwise timings will be out, although maybe they just place order/sell in a not so time sensitive manner.

Maybe the focus is on chinese hackers and so the chinese system will be interconnected and so us gets in on theirs???



posted on May, 21 2012 @ 03:24 PM
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Think about what the IMF wants to do to places like Greece. Think about why the IMF is interested in debt. Greece has no sovereignty.

China knows they are never seeing that money again. So why keep buying? China will own the American Government soon and they will have every right to demand a say in how it is run. And lets just say that they will not be in favour of raising the Debt Limit.



posted on May, 21 2012 @ 03:32 PM
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Originally posted by Covertblack

Originally posted by komp_uk



(Reuters) - China can now bypass Wall Street when buying U.S. government debt and go straight to the U.S. Treasury, in what is the Treasury's first-ever direct relationship with a foreign government, according to documents viewed by Reuters.


Now I do not know what is worse, this bypass operation or the network link that will support it.
After all we are constantly warned of chinese hacking.

Are the FED nuts or......


How do you think this looks like to other countries? We give the Chinese an advantage over all our so called allies.


None of America's allies have any money to lend you, we are all broke. The money is in the east and the oil rich nations now. We better just get used to it.



posted on May, 21 2012 @ 03:38 PM
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Originally posted by michael1983l

Originally posted by Covertblack

Originally posted by komp_uk



(Reuters) - China can now bypass Wall Street when buying U.S. government debt and go straight to the U.S. Treasury, in what is the Treasury's first-ever direct relationship with a foreign government, according to documents viewed by Reuters.


Now I do not know what is worse, this bypass operation or the network link that will support it.
After all we are constantly warned of chinese hacking.

Are the FED nuts or......


How do you think this looks like to other countries? We give the Chinese an advantage over all our so called allies.


None of America's allies have any money to lend you, we are all broke. The money is in the east and the oil rich nations now. We better just get used to it.



Japan is considered America's ally.



posted on May, 21 2012 @ 03:41 PM
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reply to post by michael1983l
 





None of America's allies have any money to lend you, we are all broke.


Oh my god that sounds funny.



edit on 21-5-2012 by Germanicus because: (no reason given)



posted on May, 21 2012 @ 03:42 PM
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Originally posted by Covertblack

Originally posted by michael1983l

Originally posted by Covertblack

Originally posted by komp_uk



(Reuters) - China can now bypass Wall Street when buying U.S. government debt and go straight to the U.S. Treasury, in what is the Treasury's first-ever direct relationship with a foreign government, according to documents viewed by Reuters.


Now I do not know what is worse, this bypass operation or the network link that will support it.
After all we are constantly warned of chinese hacking.

Are the FED nuts or......


How do you think this looks like to other countries? We give the Chinese an advantage over all our so called allies.


None of America's allies have any money to lend you, we are all broke. The money is in the east and the oil rich nations now. We better just get used to it.



Japan is considered America's ally.


Japan started buying Chinese national bonds the other day.
Scary stuff.



posted on May, 21 2012 @ 03:43 PM
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Originally posted by Covertblack
How do you think this looks like to other countries? We give the Chinese an advantage over all our so called allies.


Keep your friends close, and your enemies closer.



posted on May, 21 2012 @ 03:44 PM
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reply to post by Covertblack
 


Japans economy is in dire strights too and that was before the Tsunami.



posted on May, 21 2012 @ 03:45 PM
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reply to post by Germanicus
 



apan has been cleared for the first time to buy 10.3 billion dollars worth of Chinese government bonds. Unlike many other countries, China does not allow foreign investors to freely purchase its debt, but requires purchasers to be approved by Beijing.


You were not kidding.



posted on May, 21 2012 @ 03:46 PM
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Japan's economy

Japan National Debt 228% of GDP 2011

www.economicshelp.org...

That is an epic amount of debt for one nation.
edit on 21-5-2012 by michael1983l because: (no reason given)



posted on May, 21 2012 @ 03:47 PM
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Originally posted by Covertblack
reply to post by Germanicus
 



apan has been cleared for the first time to buy 10.3 billion dollars worth of Chinese government bonds. Unlike many other countries, China does not allow foreign investors to freely purchase its debt, but requires purchasers to be approved by Beijing.


You were not kidding.




And China and Japan pretty much hate each other.



posted on May, 21 2012 @ 03:47 PM
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Originally posted by michael1983l
Japan's economy

Japan National Debt 228% of GDP 2011

www.economicshelp.org...

That is an epic amount of debt for one nation.
edit on 21-5-2012 by michael1983l because: (no reason given)


Crazy they keep buying up our Treasuries. Currently they hold almost 1.1 trillion worth.



posted on May, 21 2012 @ 06:21 PM
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If China stops buying U.S. debt our economy will contract. That means that Chinas economy will contract. Chinas status as the new global producer is heavily dependent on the U.S. appetite. It is currently in their interest to keep things moving along smoothly. That will not always be the case.

And of course having economic power over the U.S. in the form of holding our debt is desirable. This is an economic weapon with which to leverage their will.

The end result of all this is not clear. In the event of conflict the U.S. could simply refuse to honor the debt. Who would honor debt to a nation that they are at war with. China might strike first though and get it sold off before the bonds were black flagged. The dollar would tank. The U.S. could refuse all Chinese goods instantly ruining the entire Chinese economy. The U.S. economy would suffer badly too. Think about Apple and the others.

We are now tied together by the ankles. We can work together or try to kill one another. Yea, it sucks, but is it really worse than the cold war?

We only own things in other countries so long as they go along with it. Whatever China owns over here they only own until the day we say they don't. Vice versa, too. The day the first missile flies in a war none of this stuff matters much.



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