Japan Bumps China as U.S.'s Biggest Creditor

Japan Bumps China as U.S.'s Biggest Creditor

blogs.barrons.com

In case you missed it, Japan overtook China as the largest holder of U.S. debt in December, The Wall Street Journal’s Deborah Solomon and Mark Gongloff noted in an article yesterday, citing U.S. Treasury Department data. The flip was mainly thanks to a $34 billion dip in China’s holdings, to $755.4 billion, below Japan’s $768.8 billion.

(visit the link for the full news article)

I didn't see this news story posted but this is quite significant.

China has been selling its US treasuries and will probably sell more. The flow of credit from China is being cut off and this explains a number of things.

The $6.4 billion arms sale to Taiwan.

The US President meeting with the Dalai Lama while the Nimitz supercarrier sits at Hong Kong.

The IMF gold reserves sales.

The IAEA accusations that Iran is producing nuclear warheads.

Japan is economically in no position to take China's place for very long. The EU is having its own financial crisis so they are not viable either. If China doesn't open the credit spigot back up, things will continually get much worse.



blogs.barrons.com
(visit the link for the full news article)

S&F. China has finally figured out that we don't intend to pay our debts. Therefore, giving us anymore money is a fools game. Besides, the ability to consume their goods, which was the main reason for them buying our debt in the first place, isn't coming back anytime soon. There's still a whole lot of real estate related losses coming to america via commercial, option ARM, Alt-A, etc.

Actually you are half correct. Japan has taken over China in buying debt but it's because China dumped TBonds.

China's holdings of US Treasury bonds tumbled in December, allowing Japan to take over as the top holder of American government debt, according to Treasury data released Tuesday.

China's bond holdings dropped substantially to 755.4 billion dollars in the last month of December from 789.6 billion in November, said the Treasury's international capital data report.

Japan's holdings increased to 768.8 billion dollars in December from 757.3 billion dollars in November, according to the data.

Source:www.google.com...

reply to post by December_Rain


They have been dumping them for five months. Dec happened to be the largest. They arn't making efforts to get more.

Did you see this part though:

Britain was the third biggest holder of US Treasury bonds, worth 302.5 billion dollars in December, rising from 277.6 billion in November.

The UK bought over $20 billion worth in Dec.

boy, they kept that a secret. that was good threadin . now what about china and their new strat on public gold buying for their masses. i want to start digging it for a hobby.

reply to post by GBP/JPY


Who do you think is buying up all that gold that the IMF is selling?

Who saw dark clouds on the horizon again?

reply to post by MikeboydUS


Does the U.S. ever buy another countries treasuries?

[edit on 18-2-2010 by tooo many pills]

reply to post by MikeboydUS


And the UK is the third largest creditor. As the UK is a basket case as many keep saying what will happen when those in the UK who are invested in the US need to withdraw their money.

It also appears strange that the UK investment in the US is on the rise.

It means the lines are already being drawn for the next world war.

Or perhaps I'm utterly mistaken.

You decide.

reply to post by Majic


Of course my question then is, 'Who's drawing the lines?'.

I would suggest that it's the same ones who started and funded all the previous ones. This would appear to be their grand finale and I would assume they are expecting a grand prize. (NWO)?

Originally posted by keldas
reply to post by MikeboydUS

 

And the UK is the third largest creditor. As the UK is a basket case as many keep saying what will happen when those in the UK who are invested in the US need to withdraw their money.

It also appears strange that the UK investment in the US is on the rise.

Very interesting. I had no idea the UK is the third largest creditor. Why is that? And why are they buying more when they are as broke as the US?

Originally posted by Majic
It means the lines are already being drawn for the next world war.

Or perhaps I'm utterly mistaken.

You decide.

I'm kind of getting the same feeling. Neither Japan or the UK will be able to sustain the flow of credit like China.

China thinks or possibly knows they will not get paid back. So in their eyes, what is the point of keeping the flow of credit to the US? It will not be profitable for them.

We tried the appeasing approach, lighting up the Empire State building on the anniversary of the People's Republic and even put Mao balls on the White House Christmas tree. It didn't work, China still cut the flow of credit. Instead they sell over $30 billion in US treasuries in Dec.

Following that our reaction has been to sell $6.5 billion in arms to Taiwan and meet with the Dalai Lama.

Even a blind man could see we are trying to pressure China now. Will the PRC give in though and open the flow of credit back up?

How China reacts will determine the course that this will take. If the credit flow opens back up things will go back to normal. If the PRC reacts with hostility and stands up to American pressure then things will get interesting. The easiest way to do this would be to go after Taiwan and let go of North Korea's leash. They may even support a Latin American coalition against the UK and US.

At that point all it might take is a spark and we may find ourselves in a nice little war stretching from Tibet to Argentina. I can't imagine it ending well for anyone except Russia. At least they won't have to worry anymore about the Northern Resource Area, I mean Siberia being taken by the PRC.

I kind of figured things would go this way, that we would pay China back not in resources but in cruise missiles and JDAMs.