CHINA, RUSSIA, NORWAY, BRAZIL, TAIWAN DUMP US TREASURIES
by Wolf Richter •
Five large purchasers of US Treasuries – China, Russia, Norway, Brazil, and Taiwan – have changed their minds. They’re dumping Treasuries, each for their own reasons that are now coinciding and at the fastest rate on record.
For the 12-month period ended July, sales of Treasuries by central banks around the world reached a net of $123 billion, “the biggest decline since data started to be collected in 1978,” the Wall Street Journal reported.China, the largest foreign owner of Treasuries – its hoard peaking at $1.317 trillion in November 2013 – has been unloading with particular passion. By July, the latest data available from the US Treasury Department, China’s pile was down to $1.241 trillion. But in August, the real selling started when the yuan suddenly spiraled down further after its devaluation. Panicked, and fearful of losing control over their currency, officials at the People’s Bank of China sold Treasuries and bought yuan to stabilize the currency.
That month, China’s foreign exchange reserves, which include a variety of currencies, dropped by a record $93.9 billion. And in September, they dropped another $43.3 billion, to $3.51 trillion. It was the fifth month in a row of declines.
The Journal:
Internal estimates at the PBOC show that it spent between $120 billion and $130 billion in August alone in bolstering the yuan’s value, according to people close to the central bank.Russia unloaded $32.8 billion in Treasuries in the 12-month period ended in July.
Norway, which like Russia was hit by the oil price rout, sold $18.3 billion, and Taiwan $6.8 billion.
Not all central banks were sellers. India added $36.6 billion to its stash over the 12-month period.
And the Fed, which after five years of QE is sitting on more Treasuries than any other central bank, is hanging on to its pile of $2.45 trillion, diligently rolling over any maturing debt.
2 comments:
i take it the "buying" side of the equation is made up exclusively of central banks beholden to the bunch who want central banks in every country to use corporations masquerading as governments and fiat currency to further and maintain debtors' slavery, while the "selling" side of the equation is made up of those countries which recognize the putrification and destruction awaiting them should they continue to buy into and have anything to do with the world bankers, the same putrification and destruction we're in the grip of here on the lands of america.
FreeDom
I agree with Freewill, and am personally gratified that some people are smart enough to reject the worthless U.S. treasuries. While it may be tough on some Americans, those of us who are aware will get by o.k. Those who are not aware, and have rejected our attempts to educate them, deserve whatever comes their way. I especially look forward to the new bills and the exchange of old FRN's, probably at a significant discount. Imagine the drug cartels sitting on billions of $100 FRN's having to take a 30 or 50% loss. I laugh at the thought, even though it probably won't change their life style much. I also laugh at the thought that the pompous, Bertha-better-than-you U.S. bankers not being in control any longer. Ha ha.
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