"New numbers from the Treasury Department show that China trimmed its US treasury holdings from $938.8 billion in June 2022 to $835.4 billion in June 2023 – a decrease of about $103.4 billion in just 12 months."
And you may ask, what does this mean? Selling bonds usually drives down the price and therefore increases interest rates. (This unobvious connection is explained in a number of places, including my explanation of how to get wealthy.) They may be selling because they need money for paying debts, buying stuff they need, or are losing confidence in the long-term stability of our banana republic's currency.
The good news is that other developing nations are still buying Treasury bonds.
There is a saying: "If you owe a bank a million dollars you have a problem. If you owe a bank a billion dollars, they have a problem.". Perhaps China is trying to injure our economy, which is silly, because we have President Biden doing that job.
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