Comments on: Will China Dump U.S. Treasuries? http://whiskeyandgunpowder.com/will-china-dump-us-treasuries/ Whiskey and Gunpowder features articles on gold, oil, currencies, emerging markets, energy, and more. Mon, 15 Mar 2010 03:53:29 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Andrew Matuszak http://whiskeyandgunpowder.com/will-china-dump-us-treasuries/comment-page-1/#comment-5617 Andrew Matuszak Thu, 18 Feb 2010 02:14:54 +0000 http://agoratestsite.com/wordpresswhiskey/?p=305#comment-5617 As a follow-up, the Treasury department released the December 2009 international capital report yesterday (2/16/10). As expected, its stirred up lots of scary talk about China dumping US assets. The reality of the situation is that they have very little in the way of alternatives. They run a large surplus and have committed to pegging the Yuan to the dollar. So in the short term, it would be very difficult for them to dump any large amounts of US assets. (They can switch between short and long term or between short term debt and equity--both which they've recently done.) I've written a more detailed explanation at http://economistatlarge.com/featured-articles/risk-chinese-selloff. As a follow-up, the Treasury department released the December 2009 international capital report yesterday (2/16/10). As expected, its stirred up lots of scary talk about China dumping US assets. The reality of the situation is that they have very little in the way of alternatives. They run a large surplus and have committed to pegging the Yuan to the dollar. So in the short term, it would be very difficult for them to dump any large amounts of US assets. (They can switch between short and long term or between short term debt and equity–both which they’ve recently done.)

I’ve written a more detailed explanation at http://economistatlarge.com/fe.....se-selloff.

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