Comments by "D W" (@DW-op7ly) on ""De-Risking" goes both ways as China dumps US Treasury positions, now at lowest level since 2010" video.

  1.  @unglaubichuberlieber8048  Americans consume more than they produce that has been the case for decades upon decades upon decades Plus the current generation has lost that pioneer ethos that would make the previous generations roll over in their graves
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  2. China has an 820 billion dollar trade surplus with the world the vast majority of that would be in USDs I think they are doing just fine with limiting their dollar/debt exposure 👇 China’s Gold Reserves Unveiled: Investigating Claims of Secret Hoarding and the Alleged Discrepancy JANUARY 9, 2024 Based on these calculations, Frisby estimates that China has at around 33,000 tons of gold, with at least half being state-owned. That state-owned portion (16,500 tons) is double what the U.S. holds. If China admits to the U.S., “We got twice as much gold as you,’ that’s tantamount to a declaration of war,” according to Frisby. The yuan would become more valuable, gold would become more valuable, and China would become the leader of both of these assets. OxfordGoldGroup
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  3. ⁠ ​​⁠China has an 820 billion dollar trade surplus with the world every year Holding that much debt is the right amount in my opinion The US FED crashed their credit markets selling about 600 to 700 billion in debt off its balance sheet over a 2 year period Plus China has been doing this for over a decade we are just catching on right now 👇 China’s Gold Reserves Unveiled: Investigating Claims of Secret Hoarding and the Alleged Discrepancy JANUARY 9, 2024 Based on these calculations, Frisby estimates that China has at around 33,000 tons of gold, with at least half being state-owned. That state-owned portion (16,500 tons) is double what the U.S. holds. If China admits to the U.S., “We got twice as much gold as you,’ that’s tantamount to a declaration of war,” according to Frisby. The yuan would become more valuable, gold would become more valuable, and China would become the leader of both of these assets. OxfordGoldGroup
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  4. The US FED has shown it can soap up, as much if not all the debt the USA Treasury needs to borrow You just need the Chinese and other countries to be looked upon as buying your American external Sovereign debt
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  5.  @andrewlim7751  ​​⁠China has an 820 billion dollar trade surplus with the world every year Holding that much debt is the right amount The US FED crashed their credit markets selling about 600 to 700 billion in debt off its balance sheet over a 2 year period Plus China has been doing this for over a decade we are just catching on right now 👇 China’s Gold Reserves Unveiled: Investigating Claims of Secret Hoarding and the Alleged Discrepancy JANUARY 9, 2024 Based on these calculations, Frisby estimates that China has at around 33,000 tons of gold, with at least half being state-owned. That state-owned portion (16,500 tons) is double what the U.S. holds. If China admits to the U.S., “We got twice as much gold as you,’ that’s tantamount to a declaration of war,” according to Frisby. The yuan would become more valuable, gold would become more valuable, and China would become the leader of both of these assets. OxfordGoldGroup
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  6.  @kenlee1416  Difference a lot of that US Treasury debt that is being printed up is being put on the US FED Balance Sheet in Q3 of 2019 The US FED was bailing out those TOOBIGTOFAIL banks in their repo markets once again… less their credit markets seize up once again A few things we learned since the 2008 subprime crisis Buying for US debt is not unlimited. In 2013 the US FED had to buy 71% of the newly issued external Sovereign debt by the US Treasury That Quantitative Easing (QE)debt that was soaped up/printing of money, that debt does not disappear Since we know from Q3 of 2017 to Q3 of 2019 the FEDs bright idea was to allow 50 to 60 billion of the Agency Debt and US Treasury Debt it soaped up during QE to slowly mature each month, off the FEDs balance sheet. Quantitative Tightening (QT) Where the US Treasury would issue new corresponding debt for the public to buy. Where with this QT selling they managed to dump about 600 to 700 billion in debt on the American people… as the American people are the biggest buyers of US Sovereign Debt That QT selling ended during Q3 of 2019 Because that selling of debt ended up freezing up the repo market Just like when it happened in 2008/2009 during the subprime crisis Thus the FED balance sheet went from 4.5 trillion to about 3.8 trillion.with that selling from 2017 to 2019 But then the FED had to come back in QE 2.0 and buy that Treasury debt again, all that they dumped and more Last I checked they ran that FED balance sheeet back up to over 8 trillion. Now it’s back to around 7.8 trillion Wait you might ask Agency debt is internal debt not supposed to be backed by the US Government Well the USA has had no issue with taking private internal debt and turning it into External Sovereign Debt backed by the US Government and the American people Something the Chinese might have been tempted to do with the Junk Bonds issued by those Chinese Property Developers That were a hot commodity the last few years, sought after by sophisticated foreign investors In short the Chinese purposely deflated their real estate markets. Cut off money to its Property Developers. And didnt bailout foreign investors who took a risk buying those junk bonds While the USA left their real estate market to implode. Kept the money flowing to the companies and bailed out foreign investors who invested in private internal debt Yet we are complaining who is capitalist/communist 👇 As politicians call for taxpayer bailouts and a government takeover of troubled mortgage lenders Freddie Mac and Fannie Mae, FreedomWorks would like to point out that a bailout is a transfer of possibly hundreds of billions of U.S. tax dollars to sophisticated investors and governments overseas. The top five foreign holders of Freddie and Fannie long-term debt are China, Japan, the Cayman Islands, Luxembourg, and Belgium. In total foreign investors hold over $1.3 trillion in these agency bonds, according to the U.S. Treasury’s most recent “Report on Foreign Portfolio Holdings of U.S. Securities.” FreedomWorks President Matt Kibbe commented, “The prospectus for every GSE bond clearly states that it is not backed by the United States government. That’s why investors holding agency bonds already receive a significant risk premium over Treasuries.” “A bailout at this stage would be the worst possible outcome for American taxpayers and mortgage holders, who have been paying a risk premium to these foreign investors.” “It would change the rules of the game retroactively and would directly subsidize the risks taken by sophisticated foreign investors.” “A bailout of GSE bondholders would be perhaps the greatest taxpayer rip-off in American history. It is bad economics and you can be sure it is terrible politics.” FreedomWorks
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  7.  @kenlee1416  btw the Chinese holding about 600 to 800 billion in US Sovereign Debt is just the right amount to be holding The Chinese trade surplus with the world is 820 billion dollars a year
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  8. China has an 820 billion dollar trade surplus with the world every year Holding that much debt is the right amount The US FED crashed their credit markets selling about 600 to 700 billion in debt off its balance sheet over a 2 year period
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  9.  @mittao86  China does not have to sell that US Sovereign debt they can just allow that the US debt they own, to slowly mature off the books And then they don’t have to reinvest more into buying that US Sovereign Debt But it would be smart for China to keep about 600 to 800 billion in US Sovereign debt (use it as a wea pon or piggyback off of the Class action happy American “people” the biggest holders of that US Sovereign debt(directly/indirectly) Who ain’t about to let their American Government scr e www them over for 10s upon 10s of trillions of dollars The Chinese could just tag along as the USA is tied up in their courts unable to issue new debt less the proceeds be seized by the creditors the American “people”
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  10. ⁠ ​​⁠China has an 820 billion dollar trade surplus with the world every year Holding that much debt is the right amount The US FED crashed their credit markets selling about 600 to 700 billion in debt off its balance sheet over a 2 year period Plus China has been doing this for over a decade we are just catching on right now 👇 China’s Gold Reserves Unveiled: Investigating Claims of Secret Hoarding and the Alleged Discrepancy JANUARY 9, 2024 Based on these calculations, Frisby estimates that China has at around 33,000 tons of gold, with at least half being state-owned. That state-owned portion (16,500 tons) is double what the U.S. holds. If China admits to the U.S., “We got twice as much gold as you,’ that’s tantamount to a declaration of war,” according to Frisby. The yuan would become more valuable, gold would become more valuable, and China would become the leader of both of these assets. OxfordGoldGroup
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  11. How Much Money Does the World Owe China? Our research, based on a comprehensive new data set, shows that China has extended many more loans to developing countries than previously known. This systematic underreporting of Chinese loans has created a “hidden debt” problem – meaning that debtor countries and international institutions alike have an incomplete picture on how much countries around the world owe to China and under which conditions. In total, the Chinese state and its subsidiaries have lent about $1.5 trillion in direct loans and trade credits to more than 150 countries around the globe. This has turned China into the world’s largest official creditor — surpassing traditional, official lenders such as the World Bank, the IMF, or all OECD creditor governments combined. Despite the large size of China’s overseas lending boom, no official data exists on the resulting debt flows and stocks. China does not report on its international lending, and Chinese loans literally fall through the cracks of traditional data-gathering institutions. For example, credit rating agencies, such as Moody’s or Standard & Poor’s, or data providers, such as Bloomberg, focus on private creditors, but China’s lending is state sponsored, and therefore off their radar screen. Debtor countries themselves often do not collect data on debt owed by state-owned companies, which are the main recipients of Chinese loans. In addition, China is not a member of the Paris Club (an informal group of creditor nations) or the OECD, both of which collect data on lending by official creditors. HarvardBusinessReview
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  12. China is hiding $3 trillion of foreign currency in 'shadow reserves,' adding unknown risks to the global economy, former Treasury official says Filip De Mott Jun 30, 2023 Half of China's currency reserves are "hidden," a situation that may add risks to the global economy down the road, former Treasury Department official Brad Setser wrote. While the country's State Administration of Foreign Exchange reported $3.12 trillion in foreign assets last December, Setser estimates that foreign exchange reserves actually sit at around $6 trillion. "China is so big that how it manages its economy and currency matters enormously to the world," he wrote in The China Project. "Yet over time the way it manages its currency and its foreign exchange reserves has become much less transparent – creating new kinds of risks for the global economy." A key indicator about China's reserves is a sudden pause in its reported activity. From 2002 to 2012, China's foreign exchange reserves steadily rose as the central bank bought US dollar assets to prevent China's yuan from appreciating too much, allowing exports to remain cheap. But over the last 10 years, China's reserves stopped rising, which is puzzling as China's trade surplus has continued growing, and currently stands at an all-time high, he said. BI
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