China's $53.3B Divestment in US Treasuries Signals Massive Shift From Dollar Assets
#1

https://news.bitcoin.com/chinas-53-3b-di...ar-assets/
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#2

This is a mistake not yo keep US dollar assets the best performing assets over last 5 decades.

The amount of debt owed in US dollars is estimated to be $100 trillion. To repay this debt countries and corporations need to get their hands on US dollar.

This creates.enormous demand for US dollars.

Countries like Malaysia, Argentina, Venezuela all owes money in USD so do millions of corporations around the world.

I, being poor, have only my dreams; I have spread my dreams under your feet; Tread softly because you tread on my dreams.
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#3

https://watcher.guru/news/brics-china-du...in-history
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#4

(21-05-2024, 06:08 AM)sgbuffett Wrote:  This is a mistake not yo keep US dollar assets the best performing assets over last 5 decades.

The amount of debt owed in US dollars is estimated to be $100 trillion. To repay this debt countries and corporations need to get their hands on US dollar.

This creates.enormous demand for US dollars.

Countries like Malaysia, Argentina, Venezuela all owes money in USD so do millions of corporations around the world.

USD used to be pegged with gold standard but not anymore…USD is not tied to U.S. debt… FED keeps printing USD making it like toilet paper… devaluing the dollar while the U.S. national debt is all time high of 34 trillion, no way the U.S. can pay off.


[Image: IMG-1068.jpg]
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#5

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#6

The USD is turning into toilet paper.

https://youtu.be/IGr7AQVPskI?si=t_JXsaZQvI_bOZMv
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#7

https://youtu.be/5XfOAPrKFIE?si=kQtCz8SXeEfs1h1u
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#8

What will replace USD? Or there's no more reserve currency in the world?
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#9

(21-05-2024, 06:08 AM)sgbuffett Wrote:  This is a mistake not yo keep US dollar assets the best performing assets over last 5 decades.

The amount of debt owed in US dollars is estimated to be $100 trillion. To repay this debt countries and corporations need to get their hands on US dollar.

This creates.enormous demand for US dollars.

Countries like Malaysia, Argentina, Venezuela all owes money in USD so do millions of corporations around the world.
China and the US have slowly drifted apart politically.  The US must have expected the move from China when they get tough with China.    This is because if the US were to impose a sanction on China,  all the Chinese assets in the US would be frozen. 

Don't think the US is too worried at the moment because the Treasuries sold by China were taken up by other foreign central banks.


[Image: Screenshot-2024-05-21-072238.jpg]

This is despite the present rush of the private sector buying up treasury.  Usually,  the central banks will shunt away from buying treasury when the private sector is buying.  The private sector is now holding more US Treasury.


Quote:Fed and Treasury data for the first 11 months of last year show that on a valuation-adjusted basis, overseas investors' Treasury notes and bonds holdings rose by $428.4 billion. Of that, central banks accounted for only $31.9 billion.

https://www.reuters.com/markets/us/forei...024-01-23/



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#10

Timely for China to sell when US treasury market is good.  This will also reduce both countries from depending each other as they have none been “smiling” to each other for quite some time.
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#11

Better sell more before US makan away the money like Russia.
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#12

Distrust is growing between the two But
the actual biggest seller in the past year is the Fed

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