What Happens If China Dumps Us Bonds

Meanwhile, US can always offset it with a few rate hikes if needed. Commerce Department announced Friday that it had made a preliminary determination that imports of rubber bands from China and Thailand amounted to dumping. There is little chance that China will dump all of its US debt at once. dollars, with the last three months accounting for nearly half of that sell-off. equity and bond holdings in January, a Reuters poll of fund managers showed on Friday, as the S&P 500 suffered its worst January since 2009 and after the U. China’s national debt is the sum of all money owed by the central and local governments of China through the issue of debt instruments. President Donald Trump fired back at critics of his administration’s response to an outbreak of coronavirus Sunday, insisting that the White House has a “perfectly coordinated” and “finely tuned” planed to handle the virus, which has killed around 3,000 people worldwide, but only 19 in the United States. Moscow's big sell-off reportedly was not so crucial for the $14. Shedlock details the possibility of China dropping US Tresuries. Saudi Arabia dumped the majority of its Tesla stock, missing out on monstrous gains in just the past few weeks. Now, the city may have to pay companies to take them after China imposed new restrictions on recycled material. China could dump Treasury bonds in a large quantity into the bond market, thereby collapsing the US Treasury Bond Market and the Dollar simultaneously. Increasing and reducing bond yields would work in tandem with exchange rate adjustments to shift this debt around,. Treasury debt, may soon begin unloading it, Gary Burtless says that, contrary to the claims of many observers, a. China's "nuclear option" in the US trade war would be economic suicide. “I don’t think the Chinese are going to do that. Because of our national debt and liabilities, China and Japan, for example, have been slowly selling off their US bonds and other securities and getting rid of their “loans” to this country. But markets have been fighting the Fed so far. Many foreign countries have decreased their demand for US government debt. THE SECTOR THAT WOULD BE SERIOUSLY EFFECTED IS THE GLOBAL JUNK BOND MARKET. bonds, bills and notes decreased by $5. Treasury bonds affects us all Jan 24, 2016 demands all its money back in one day and the United States and world economies collapse — the reality seems much more. US sanctions have forced Russia to look at ways of securing its foreign reserves. Shedlock details the possibility of China dropping US Tresuries. They get dollars from net exports to the US. What happens to all the dollars this creates? If China dumps treasuries, US switches recognition of China back to Taiwan, check, your move XJP. The Fed then buys China's $500 billion bond dump with those euros and yen. What the Fed wants to accomplish with its rate hikes is push up long-term rates. Debt? Bond Market Turmoil Sparks Fear of MASSIVE SELLOFF! World Dumping US Debt & Hoarding Gold: What Happens When the Biggest Bubble In History. 2 trillion in US treasury bonds and officials have reportedly started to slow or halt their purchases. Whatever happens in China, the chances are remote the country will dump its U. The body of the article uses that word “weaponise” (British spelling). By Michael Pettis - If China is indeed threatening to retaliate against any U. Why investors fear a China Treasury dump What would happen if China were to dump its entire Treasury portfolio in one fell swoop? The prospect of a wholesale sell-off - and interest rate spike. Beijing and Moscow have been planning yuan bonds since 2016, but the plan has been postponed several times. These are not renewable, and as the world's population increases and the supply of fossil fuels dwindles, it becomes more expensive to extract what fossil fuels remain from their subterranean sources. After the Chinese government devalued the yuan in August, their currency. 17 trillion of Treasuries as of the end of January, making it the largest of America's foreign creditors and the No. Treasuries From Birch Gold Group As we’ve noted in previous articles , countries around the world are liquidating U. , mostly US Trasurys but also those of Europe and Japan) shown below into an illiquid Treasury bond market where central banks already hold 30% or more of all 10 Year equivalents (the BOJ will own 60% by 2018), then it is debatable whether the mere outflow. A year into a new ruling administration, Malaysia continues to grapple with a whopping 1 trillion ringgit debt (US$245 billion) – but as it goes on a selling spree of “non-strategic assets”, questions are being asked over who is benefiting from the exercise and whether the moves could cause ties with neighbouring Singapore to take a further hit. Russia has rapidly sold off the vast majority of its stash of American debt. In a further sign the US is losing the dominance of the world’s economic system which it has enjoyed since the end of World War 2, Russia is massively divesting from US securities. stock prices, are rethinking their listings on U. Debt Deal with Dems, What Does Trump See Coming, Dollar Dump Gold Pop By Greg Hunter On September 8, 2017 In Weekly News Wrap-Ups 91 Comments By Greg Hunter’s USAWatchdog. 3 billion to $1. China, which holds the most US Treasury bonds, also sold off some seven billion-worth of its American assets, from March to April, and now has $1. China's sell-off of U. by Tyler Durden. 2 trillion in US treasury bonds and officials have reportedly started to slow or halt their purchases. Fed began tightening. dollar in international trade…[and this shift] is going to have massive implications for the U. bonds, bills and notes decreased by $5. It also has no impact on exchange rates. Communist China Dumps U. China's financial woes are causing it to dump U. The Numbers Are In: China Dumps A Record $94 Billion In US Treasurys In One Month Goldman argues "real" figure might have been closer to $115 billion. Companies are racing to dump their pension plans. To prevent a spike in interest rates, the U. so sometime BEFORE qe2 actually ends we should see a sell off in commodities, equities and bonds. With companies moving less in lockstep, professional investors will declare this a “stock pickers’ market. government's ability to issue new debt at the low interest rates it desires, forcing up the cost of all its new borrowing. The United States tried it before, two years before he ran his ads bashing Japan. To name a few, China could exercise the “nuclear option” of dumping U. Economist John Williams says if Russia sells its U. No investors, let alone billionaires, will want to own stocks with falling profit margins and shrinking dividends. 11 Things You Need To Know About Silver Right Now By Silver Shield, on June 20th, 2013 Many of you are waking up to Sub $20 Silver with another huge paper smash in the early hours of the day. Will China Dump U. China has sold $100 billion worth of Treasury bonds over the last two weeks. What If China Stops Buying U. All that happens is that. The United States is mired in an intensifying trade war with its biggest creditor, raising the specter that China could go nuclear by dumping its $1. ” Whatever happens, the China story is. 18 trillion invested in securities. Folks, all the dollars the Chinese have came from the US. The report that China is lightening its load of US treasury debt, open as it is to multiple interpretations, is the sort of thing that keeps markets interesting. Their theory goes like this: China may sell its $1 trillion holdings of Treasury bonds and crash the Treasury bond market. The US buys Chinese goods, and China finances US debt. ran rampant across a wide range of industries, from toys to personal. interest rates by about 1%. Many foreign countries have decreased their demand for US government debt. Wright has not paid a penny to either Mr. This is posturing, no different than NK meeting in China. Russia has rapidly sold off the vast majority of its stash of American debt. Treasury bonds. 1 It’s no revelation today that certain nations have lost confidence in America’s empire of debt and are making alternative arrangements. Defaulting. Did Former Trump Adviser Carl Icahn Dump Millions in Stock Before Steel Tariffs Were Announced? The billionaire investor and sometime Trump regulatory reform adviser insists he had no prior. The move followed a rate rise by the Federal Reserve in December and a spike in U. China, which holds the most US Treasury bonds, also sold off some seven billion-worth of its American assets, from March to April, and now has $1. dollar in international trade…[and this shift] is going to have massive implications for the U. Why investors fear a China Treasury dump What would happen if China were to dump its entire Treasury portfolio in one fell swoop? The prospect of a wholesale sell-off - and interest rate spike. Even China, which holds more US debt than any other country, has lowered its US Treasury debt from 14 percent to 7 percent. Shedlock details the possibility of China dropping US Tresuries. The Collapse Of The Petrodollar: Oil Exporters Are Dumping US Assets At A Record Pace [1] Submitted by Tyler Durden [1] on 04/15/2015 22:42 -0400 Back in November we chronicled [23] the (quiet) death of the Petrodollar, the system that has buttressed USD hegemony for decades by ensuring that oil producers recycled their dollar proceeds into still more USD assets creating a very convenient (if. 5 trillion, or about 106 percent of GDP. To name a few, China could exercise the “nuclear option” of dumping U. A devaluation is another matter. Recent trade skirmishes between China and the United States are less about steel and soybeans, and more about who will lead global innovation in the 21st century, writes Wharton dean Geoffrey Garrett. At least it deserves to be taken more seriously than in the last administration when the prospect of. The Bank of China rationally prefers to earn interest on dollar holdings, so these are converted to US treasuries. Treasuries. China sells more US T-bonds Center. so sometime BEFORE qe2 actually ends we should see a sell off in commodities, equities and bonds. And while the public declarations of potential tariffs may be quite dramatic, behind the scenes US and Chinese officials are still talking, and laying out all the options. Not that this should come as a shock. Joshua Krause what happens if China decides to pull the rug out from under us by ditching these debts? We may be about to find out, since lately, China has been dropping US government bonds like hot potatoes. As RT reported last month , China and Japan - the two main holders of the US Treasury securities - have trimmed their ownership of notes and bonds in August, according to the latest figures from the US Treasury Department, released. China’s national debt is the sum of all money owed by the central and local governments of China through the issue of debt instruments. What If China Dumps US Treasury Bonds? Please, give me one coherent explanation of how that could happen. bond prices also would bring down the value of China. China in turn use the USD to buy US bonds. 2017 – short-term interest rates have been steadily rising. What will happen after China starts to dump US bonds? Asked by Maymie Paucek. The US Treasury Department report for April published on June 15 revealed that Russia sold $47. Daily financial and political snark 18 comments on “ Tales From The Crypto: Bitcoin Dumps And Pumps After Tether I put more trust in US. China buying US Treasuries was never a favour to the US, it was a way to manipulate their currency down. A trade war with China would backfire on Trump — and America The two powers are more dependent on each other than Trump wants to admit. 1 it had held in Treasury bonds (T-bonds). China could simply announce that it is taking over, and the other nations will pivot to China. In essence they have become like states in the United States and simply aren't able to issue currency to "print" their way out of a major downturn. 4 billion in May 2009 to $5. This will cause an increase in the equilibrium price and an increase in the equilibrium quantity. Whatever happens in China, the chances are remote the country will dump its U. TDB: Tell us something about your entry into the rail sector. 3 billion to $1. i think qe3, for political reasons, can't happen until AFTER another downswing in the financial markets and the economy. If it did, the US dollar […]. World Prepares to Dump the Dollar American economists think the world can’t afford to let go of the dollar’s reserve currency status. However, if you want to sell your Treasury bonds before maturity, you lose this guarantee of your principal. It now has a total of about $48. Russia dumps $47 BILLION of US securities, massively buying gold. Trump's trade war with China could cause the country to sell off US treasury bonds. President Donald Trump fired back at critics of his administration’s response to an outbreak of coronavirus Sunday, insisting that the White House has a “perfectly coordinated” and “finely tuned” planed to handle the virus, which has killed around 3,000 people worldwide, but only 19 in the United States. “A default on US treasury bonds would be catastrophic to the global economy ”. Dumping its U. Even if China did decide to dump Treasuries, the maneuver would be unlikely to cause economic catastrophe for the US. China is the largest foreign holder of US Treasury debt and has been for a number of years. Treasury bonds and discontinuing buying. See you on the flip side. China's Gold Stocks, Dumping of US Treasuries, Quantitative Tightening (QT), Oil Markets. 32 trillion holdings of US bonds in a scheme to drive American interest rates up; thereby strengthening the dollar and devaluing the Chinese currency. But that is a challenge at the moment because for that to happen, international demand has to rise, and China needs to consolidate its production capacity. Here's the answer and what it means for the US economy and monetary policy going forward. Russia fell to 22nd place on a list of major foreign holders of US securities. Since then, however, China has been reducing its holdings of US debt. The report that China is lightening its load of US treasury debt, open as it is to multiple interpretations, is the sort of thing that keeps markets interesting. On June 22, in Setser vs Rosenberg: China's "Nuclear" Option of Dumping Treasuries, we discussed competing theories on how China might respond to a trade war with the US. According to the Financial Times, China wasn't the only country dumping US debt. And the Fed can go about its path of raising short-term yields, confident that the Chinese authorities will do their part to push up long-term yields faster than the Fed is pushing up short-term yields. Did Russia Mass-Dump Its US Bonds in Coordination With China? "One can't help but wonder - as the Yuan-denominated oil futures were launched, trade wars were threatened, and as more sanctions were unleashed on Russia - if this wasn't a dress-rehearsal, carefully coordinated with Beijing to field test what would happen if/when China starts to really liquidate. 1 trillion of Treasurys would have on the bond market, and concluded the 10-year yield could rise by up. The worst thing that could happen is that the United States should fail to pay its debts when they come due. India has imposed anti-dumping duty on certain stainless steel products from the European Union and other nations including China and Korea, in order to protect the domestic industry from cheap imports. 8 billion to $1. What could they do? 9 months ago # QUOTE 1 Good 0 No. dollar and start dumping U. China's sell-off of U. If you have questions or concerns, please contact us through Chase customer service or let us know about Chase complaints and feedback. But China might suffer the most. 1 trillion, would fetch far less as the fire sale caused bond prices to drop—a 5 percent price decline, for example, could. government debt. Such a sale would be aimed at hurting the value of US Treasuries, thereby causing yields to spike. Bond requirements start accumulating — or "stacking" — when importers bring in goods that are affected by anti-dumping or countervailing duties. China and Russia have already begun using the U. So if that's why Buffett, Paulson, and Soros are dumping stocks, they have decided to cash out early and leave Main Street investors holding the bag. If China decides to dump $500 billion in US bonds no problem. 32 trillion holdings of US bonds in a scheme to drive American interest rates up; thereby strengthening the dollar and devaluing the Chinese currency. And we don't spy on anyone else. Does China have a chain around America's neck because it owns so much U. it’s a much bigger problem for China than it is for us. This will cause an increase in the equilibrium price and a decrease in the equilibrium quantity. Focus instead on the bond markets, which are massive in comparison to stocks. India, China And Others Dumping US Dollar To Buy Euro By Bala Vaddi Special Correspondent IndiaDaily. debt auctions last year, the highest share since the Treasury. 7% in the fourth quarter of 2014. This cycle appears now to be over. Home; World; Do Not Use world news 'Regret' EU's anti-dumping duties: China ‘Regret’ EU’s anti-dumping duties: China China's steel industry, a major employer, has struggled to meet targets to reduce its overcapacity, and rising prices for steel have encouraged firms to ramp up production for export. We've made some changes to EPA. Treasury bonds in November. Treasury bills, decreasing its ownership of the short-term U. government debt. The short answer is that since the Fed began dumping bonds back on the market – it has shed $458 billion since Sept. Recent trade skirmishes between China and the United States are less about steel and soybeans, and more about who will lead global innovation in the 21st century, writes Wharton dean Geoffrey Garrett. China holds US Treasuries, equities in the form of corporate “paper” such as bonds, non-voting stock certificates-typically premium shares, private placements which had negotiated terms and are not tradeable, SDRs which contain a percentage of several major currencies, including the US dollar as issued by the IMF, the International Monetary Fund, and other assets as in the form of gold bullion usually held in the US Federal Reserve Bank of NY on account of a foreign government. The Fed then buys China’s $500 billion bond dump with those euros and yen. government’s ability to issue new debt at the low interest rates it desires, forcing up the cost of all its new borrowing. yields are driving away the Asian giant, which has ambitions for its currency, the yuan, to replace the dollar as the world's main reserve currency. Don't Worry, China Won't Dump the Dollar. 5bn of US government bonds over the course of the month, according to data released by the US Treasury on Wednesday. But, you say, wouldn't that send interest rates up and depress the American economy?. He knows his trade war against China could backfire and damage the US economy, and he wants all the downside insurance he can get. This is particularly concerning since China holds so much of America's debt and so many US dollars. A devaluation is another matter. From Birch Gold Group. I am going to consider getting some out into January if price falls by selling the current Puts for. tariffs by selling a huge chunk of the more than $1 trillion of U. Markets in one of the three main categories of bonds -- corporate, municipal and sovereign debt, such as U. In the bond world, that risk comes in a few different forms. The dollar slumpe. China's sell-off of U. You can tell an altcoin is close to death when its price soars. Well, guess what? China sold $2. Shedlock details the possibility of China dropping US Tresuries. To prevent a spike in interest rates, the U. What If China Stops Buying U. In this hypothetical scenario where foreign governments counter Trump's aggressive trade stance by dumping their US Treasury and US dollar reserves, any US imposed trade barriers will only further lessen the appeal and utility of the US dollar. This is particularly concerning since China holds so much of America's debt and so many US dollars. China sells $34. However, according to The South China Morning Post, China has its own "range of financial firepower at its disposal to punish the US" for the tariffs war, including its massive $1. I am going to consider getting some out into January if price falls by selling the current Puts for. In any case, from not having to worry about such things in the past, now all market participants need to worry about. Government Debt Shift in Treasury holdings is latest symptom of emerging-market slowdown hitting global economy. In March, Moscow cut its Treasury holdings by $1. The body of the article uses that word "weaponise" (British spelling). 4 reasons why China won’t use ‘nuclear option’ of selling Treasurys to retaliate against U. Norway's sovereign wealth fund, the world's biggest thanks to petrodollars, will sell off stakes in oil and gas exploration and production companies to reduce its exposure to black gold, the government said Friday. Peter Navarro (Photo: Andrew Harrer/Bloomberg/Getty Images) The president would do well to ignore his adviser’s advice on China. Customs and Border Protection will require importers to pay a cash deposit or post a bond equal to the estimated dumping margin. spend all $1 trillion at once?. FAST FIVE: Market Crash Continues Ahead Of Futures Open - Navigating What Happens Next. 18 trillion invested in securities. Investors might dump stocks for bonds, where they'd suddenly get a higher return. It's been cached. But as the trade war between the US and China continues to intensify, China could use its holdings of US debt as a weapon. We have no production base in the United States anymore, and it was that production base that won us the last World War. The catch is that it would lead to a revaluation of the country's own US bonds as it sold. 3 billion to $1. Similarly, China's US Treasury holdings in March decreased by US$10. So far China doesn't look very interested in climate change either and Europe is very divided. What happens to all the dollars this creates? If China dumps treasuries, US switches recognition of China back to Taiwan, check, your move XJP. The body of the article uses that word "weaponise" (British spelling). The Chinese could. On 26 October 2017, India imposes anti-dumping duty on stainless steel from US, EU and China. tariffs by selling a huge chunk of the more than $1 trillion of U. The point is, you can't just look at one side of the equation, as though the dollars China receives from selling Treasury bonds just disappear. Remember that any financial assurance provided by you will be held by the Department for two years after the end of your tire hauling activities. A devaluation is another matter. May 15 - Here's What Happens if China DUMPS Its $1 Trillion in US Debt Amid Trade War. In which many chinese private and State owned companies are big borrowers. That has put a very serious pressure on the US Dollar. Informational listing regarding the Harmonized Tariff. China Is Dumping U. The Fed is not dumping it all at once. Market Interest Rates and Bond Prices Once a bond is issued the issuing corporation must pay to the bondholders the bond's stated interest for the life of the bond. Back in 2016, China's Treasuries holdings fell sharply by some $200 billion from May to November of that year as the yuan depreciated on worries about the Chinese economy. The sweet. debt through the purchase of Treasury bonds, and many people wonder why they do this. China is the biggest holder of reserve assets in the world, holding a combination of bonds, currencies and commodities like gold. 4 billion in May 2009 to $5. Another possible scenario is that OPEC oil producers suddenly decline to sell its oil in US. taxpayers would be paying far more interest to bond holders, potentially with devastating consequences. Should china dump all its US T’s overnight and refuse to buy more the only injured part would be, china. That sum was $150. Other nations hold on to them because they are confident in the dollar's stability, others even peg their currency against it. We have no production base in the United States anymore, and it was that production base that won us the last World War. There is no net supply of dollars from China. It is the lowest level for the country since February last year. From the BBC this morning: The dollar has hit a further record low against the euro in Asian trade, after reports that China was cutting back its purchases of US Treasury bonds. Now if China or Japan did this it would be a different story. The Fed has said that they will retain their. In contrast to the other answers, which are fairly optimistic, I have to say that they are not considering all of the factors at work in such a situation. Please allow 3-5 business days for any cash deposits to post to account. The discussions regarding what to do with the mortgage-backed securities' (or MBS) assets on the Fed's balance sheet is important to mortgage REITs. Santanomics 🎅🏻🤓 is bringing us China data dump this morning at 10am and Indonesia November trade data (more weakness, esp from imports which is bad news for domestic demand). The People's Bank of China could intervene in the currency markets to smooth the yuan's decline. Investors might dump stocks for bonds, where they'd suddenly get a higher return. and other tech companies to bring home their overseas cash hoards, it’s leaving a void in the market for short-term corporate bonds, where those firms had. Obligations that are not represented by bonds or bills, such as pension obligations or guarantees to the banking sector or private companies are not included in the national debt figure. Tobacco investment is a rarer beast too these days. We've made some changes to EPA. 32 trillion in late 2013. Unfortunately, it’s too late to discuss retaliation in the future tense. Wright’s lawyers played offense with Mr. That, in turn, would make loans for US corporations and private borrowers more expensive, cooling US growth. Re: What Would Happen if Russia & China Dump the American Dollars A simple way of making sense out of the economy would be in this picture, if you make a creation and it doesn't turn out right often the creator(s) will destroy it to begin again. It’s not a trade they can unwind without considerable harm to themselves. China’s holdings of U. And we don't spy on anyone else. Treasuries. government is at a relatively high risk of default. Not so long ago, its economy was growing at a rate of 10 per cent. China’s national debt is the sum of all money owed by the central and local governments of China through the issue of debt instruments. China has filed an appeal against a ruling by the World Trade Organization (WTO) in a dispute over methodologies used by the United States to calculate anti-dumping tariffs targeting Chinese. In normal parlance it is Chinese Fixed Deposit with USA. "I don't think the Chinese are going to do that. taxpayers would be paying far more interest to bond holders, potentially with devastating consequences. China has been steadily dumping US dollar holdings over the past several months and Japan has followed suit. On Tuesday evening, we asked what would happen if emerging markets joined China in dumping US Treasurys. What is truly amazing is China has half the per capita emissions as Australia, yet 55x the population. May 15 - Here's What Happens if China DUMPS Its $1 Trillion in US Debt Amid Trade War. You can tell an altcoin is close to death when its price soars. bonds, bills and notes decreased by $5. What does the fact that China is unloading US debt have to do with what happens after Donald Trump? Answer: Nothing, really. China is buying up lots of gold and dumping US treasuries. The worst thing that could happen is that the United States should fail to pay its debts when they come due. What's behind steel dumping? Twin peaks in China China's demand for steel is peaking, and its response – to export more – is costing jobs on Minnesota's Iron Range. Now that's slipped to about 6%, and many economists expect. " Whatever happens, the China story is undergoing significant revision. Let's say that happens (like it did in mid. 18 trillion in April, according to Treasury Department data released in Washington on Friday. China is showing the United States that it will make good on its trade threats. WASHINGTON At last count, China held slightly more than $1 trillion in U. contributing to a temporary bond-market selloff at the time. In the wake of speculation that China, which has acquired a huge amount of U. China just sold almost $50 billion in US Treasurys… But don’t panic just yet. Not so long ago, its economy was growing at a rate of 10 per cent. by Mish Shedlock, The Maven: The alleged “nuclear” option of China dumping treasuries is Much Ado About Nothing. Will It Happen? US Dollar May Sink if China Dumps Treasury Bonds. A devaluation is another matter. This week, the editor-in-chief of the Global Times, a state-aligned Chinese tabloid, said Chinese scholars were looking into the possibility of China dumping US Treasuries. In short, the new currency regime has led the PBoC to dump more US paper in the past two weeks than it had YTD. Now if China or Japan did this it would be a different story. The Bank of China rationally prefers to earn interest on dollar holdings, so these are converted to US treasuries. China's Gold Dump: The Greatest Financial Bubble in Human History May Soon Burst by David Yee, published Jul 23, 2015 Gold is now sitting on a 5-year low after China dumped 5 tonnes of gold into the Shanghai markets on Monday during the first minutes of trading, with a slow, but steady sell-off continuing through the week. He knows his trade war against China could backfire and damage the US economy, and he wants all the downside insurance he can get. Even China, which holds more US debt than any other country, has lowered its US Treasury debt from 14 percent to 7 percent. "If they decide they don't want to hold them, there are other buyers," he says. Because of our national debt and liabilities, China and Japan, for example, have been slowly selling off their US bonds and other securities and getting rid of their “loans” to this country. What would happen then? Astute. It’s not a trade they can unwind without considerable harm to themselves. The dollar was soaring. com FEB 10, 2017 Based on this limited data, China's holdings of US Treasuries have plunged by $215. After the Chinese government devalued the yuan in August, their currency. National Debt? For the United States, China's dumping of U. Market Interest Rates and Bond Prices Once a bond is issued the issuing corporation must pay to the bondholders the bond's stated interest for the life of the bond. assets -right now that is U. Customs bonds. The Asian nation owns so much already that a wholesale liquidation of Treasuries would only hurt. The Chinese haven't been dumping Treasuries at the same rate as the Japanese - at least not until recently - but they haven't been buying either. by Mish Shedlock, The Maven: The alleged “nuclear” option of China dumping treasuries is Much Ado About Nothing. But this kind of intelligence from China on Russian desire and willingness to embarrass the US in a financial sense may help to explain - in a small way - why President Obama shows little desire. The People's Bank of China owns more Treasury bonds than anyone. In the United States, the Congressional Budget Office reckons the Obama administration's planned budgets would increase the debt-to-GDP ratio from 41 percent in 2008 to 82 percent in 2019. WASHINGTON (AP) - China is sending conciliatory signals as U. China, the emerging and competing empire, has already started the process of dumping the American dollar in a careful and coordinated fashion. For these reasons, China will continue to be one of the world's largest holders of U. What's the problem and what needs to change?. After the Chinese government devalued the yuan in August, their currency. Treasury bills, decreasing its ownership of the short-term U. Its holdings of US Treasury bonds, notes and bills peaked at apprx. " Whatever happens, the China story is undergoing significant revision. Is it time to dump Chinese stocks? US investors were spooked by a selloff in China that the media there is dubbing ‘‘Black Monday. - Scott Miller. In the wake of speculation that China, which has acquired a huge amount of U. Jim Cramer: The More Treasuries the Chinese Dump the Better People can't have it both ways when it comes to worrying about the bond market and stocks. Because of our national debt and liabilities, China and Japan, for example, have been slowly selling off their US bonds and other securities and getting rid of their “loans” to this country. If China decides to dump $500 billion in US bonds no problem. debt-holders. there's not another currency doing so great everyone's willing to retreat into it so I feel like this is what you hope happens, not reality.