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Will China start unloading US bonds / dollars?

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    Will China start unloading US bonds / dollars?

    Will be interesting to see what effect of China's interests in the US should they choose to continue the shutdown.

    Do I think the reserve currency looks better or worse with each passing day they choose not to do anything? I think worse.




    China tells US to avoid debt crisis for sake of global economy


    A senior Chinese official has warned that the "clock is ticking" to avoid a US default that could hurt China's interests and the global economy.

    China, the US's largest creditor, is "naturally concerned about developments in the US fiscal cliff", vice finance minister Zhu Guangyao said.

    Washington must agree a deal to raise its borrowing limit by 17 October, or risk not being able to pay its bills.
    "Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark Twain

    #2
    Originally posted by scooterscot View Post
    Will be interesting to see what effect of China's interests in the US should they choose to continue the shutdown.

    Do I think the reserve currency looks better or worse with each passing day they choose not to do anything? I think worse.




    China tells US to avoid debt crisis for sake of global economy
    <SASGuru mode>

    You're cretinism takes on new heights today. We have a new village idiot etc etc.

    </SASGuru mode>

    Seriously though, China is the largest holder of US$ in the world. They are held hostage to the US$ as if they started off loading them it would trigger a dollar collapse and they would then be sitting on huge piles of worthless currency and their own econonmy would implode and the whole global financial economy would cease to exist.

    So in answer to your question, no don't be so bloody stupid.

    HTH
    Knock first as I might be balancing my chakras.

    Comment


      #3
      Originally posted by suityou01 View Post
      =

      So in answer to your question, no don't be so bloody stupid.
      Be nice - he was educated in Scotland.
      "You’re just a bad memory who doesn’t know when to go away" JR

      Comment


        #4
        Originally posted by suityou01 View Post
        <SASGuru mode>

        You're cretinism takes on new heights today. We have a new village idiot etc etc.

        </SASGuru mode>

        Seriously though, China is the largest holder of US$ in the world. They are held hostage to the US$ as if they started off loading them it would trigger a dollar collapse and they would then be sitting on huge piles of worthless currency and their own econonmy would implode and the whole global financial economy would cease to exist.

        So in answer to your question, no don't be so bloody stupid.

        HTH
        you make sound like they don't have a choice
        "Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark Twain

        Comment


          #5
          Originally posted by scooterscot View Post
          you make sound like they don't have a choice
          They don't unless they do it very, very slowly. Announcing that they are selling US bonds would reduce their value by 10% minimum overnight....
          merely at clientco for the entertainment

          Comment


            #6
            Originally posted by eek View Post
            They don't unless they do it very, very slowly. Announcing that they are selling US bonds would reduce their value by 10% minimum overnight....
            If the US defaults, if, then the Chinese will find themselves sitting on a pile of paper worth about as much. Bugger if I'd be sitting on me hands doing nothing about the situation.

            Why of why the US still maintains a AA+ credit rating when it's potentially 10 days away from default is beyond me.
            "Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark Twain

            Comment


              #7
              When the news of the shutdowns hit the market, everyone panicked and bought...........US govt debt.

              Safe haven.

              Yep, the markets are mad. People worried about the collapse of the US buying US debt as it's the ultimate safe haven.

              Comment


                #8
                Originally posted by DimPrawn View Post
                When the news of the shutdowns hit the market, everyone panicked and bought...........US govt debt.

                Safe haven.

                Yep, the markets are mad. People worried about the collapse of the US buying US debt as it's the ultimate safe haven.

                No where else to put your money. At least with US Treasury bonds the only issue is that you may or may not get your money back. With anything else there is a risk that they may or may not get the money fred bloggs owes them so there may be bigger risks...

                but yes its utterly insane....
                merely at clientco for the entertainment

                Comment


                  #9
                  Originally posted by scooterscot View Post
                  If the US defaults, if, then the Chinese will find themselves sitting on a pile of paper worth about as much. Bugger if I'd be sitting on me hands doing nothing about the situation.

                  Why of why the US still maintains a AA+ credit rating when it's potentially 10 days away from default is beyond me.
                  You would think the Chinese would have hedged their USD exposures though. They arent punting, like Suity does.

                  Comment


                    #10
                    Originally posted by aussielong View Post
                    You would think the Chinese would have hedged their USD exposures though. They arent punting, like Suity does.
                    No they're not; who'd want a trading partner where one of them keeps the other's balls in a vice?
                    "Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark Twain

                    Comment

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