China dumping dollars and stockpiling copper?

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This may have more to do with cheap copper than poor dollar. Commodities are cheap, so they are stocking up.

 

[TastesLikeChicken]

Originally posted by: nullzero
Tastelikechicken,

The reason why we have not seen this reflected in the bond markets is because of deflation forces, and FED intervention. When the FED does stuff like this it makes you wonder what demand is left for U.S. treasuries.
http://www.bloomberg.com/apps/...=home&sid=aPlq8GB5FWSc

The only reason we have not seen a rapid decline in value is because deflation is masking it atm, and most the world's debt is owed in USD. Once the unwinding slows or ends we will be up shit creek.

Haven't the people who continually forecast that the US is gonna get theirs any time now tired yet of being continuously wrong? I've seen this same sort of prognostication for decades now. It always eminates from a certain subset of people who seemingly fantasize about the US crashing and burning; the ones who can't tolerate the US being the dominant country in the world.

Do you know why the US isn't going down any time soon? It's because every other country in the world is in the economic doldrums as well, some far worse than the US. There is no such thing any longer as the US going down. Not in the global economy of today. If we go down the entire world goes with us because of the interdependency. Nobody is economically independent, least of all China. So if we go down, they go down too, along with the rest of the world in the process.

 

[imported_gardener]

Originally posted by: Genx87

Did the Chinese decouple their currency from ours yet?

A good point, my rightwing friend, but I would counter that the move by the Fed to buy treasuries was in response to an overture by the Chinese that they would not be in the market for more US Treasuries which are essentially currency futures.

Its as if they haven't yet filed for divorce, but they've loaded the trunk with papers and jewelry, and moved other assets out of the joint account.

As for the China/copper stuff, many of you know that China has purchased stakes in many of the world mining companies, Rio Tinto purchases of late, Argentinian Oil, the list goes on. Even the recent shunning of the Dali Lama by the S. African gov't comes to mind.

I'm no economist, but I trade enough stock to see the pattern. It ain't just copper, OP. China has cash and are positioning for the next Century.

 

[theeedude]

Originally posted by: TastesLikeChicken

Originally posted by: nullzero
Tastelikechicken,

The reason why we have not seen this reflected in the bond markets is because of deflation forces, and FED intervention. When the FED does stuff like this it makes you wonder what demand is left for U.S. treasuries.
http://www.bloomberg.com/apps/...=home&sid=aPlq8GB5FWSc

The only reason we have not seen a rapid decline in value is because deflation is masking it atm, and most the world's debt is owed in USD. Once the unwinding slows or ends we will be up shit creek.

Haven't the people who continually forecast that the US is gonna get theirs any time now tired yet of being continuously wrong? I've seen this same sort of prognostication for decades now. It always eminates from a certain subset of people who seemingly fantasize about the US crashing and burning; the ones who can't tolerate the US being the dominant country in the world.

Do you know why the US isn't going down any time soon? It's because every other country in the world is in the economic doldrums as well, some far worse than the US. There is no such thing any longer as the US going down. Not in the global economy of today. If we go down the entire world goes with us because of the interdependency. Nobody is economically independent, least of all China. So if we go down, they go down too, along with the rest of the world in the process.

Well, we are seeing that now, but just because we go down together, doesn't mean we are all going to go back up together. Other countries are seeing that we just brought down their economies due to recklessness, so they are reevaluating their policies wrt to lending to us. Sure China is sitting on 2T of our debt, but we are creating trillions more left and right, so if we can unload trillions of dollars of US debt in this market, so can China.

 

[TastesLikeChicken]

Originally posted by: senseamp

Originally posted by: TastesLikeChicken

Originally posted by: nullzero
Tastelikechicken,

The reason why we have not seen this reflected in the bond markets is because of deflation forces, and FED intervention. When the FED does stuff like this it makes you wonder what demand is left for U.S. treasuries.
http://www.bloomberg.com/apps/...=home&sid=aPlq8GB5FWSc

The only reason we have not seen a rapid decline in value is because deflation is masking it atm, and most the world's debt is owed in USD. Once the unwinding slows or ends we will be up shit creek.

Haven't the people who continually forecast that the US is gonna get theirs any time now tired yet of being continuously wrong? I've seen this same sort of prognostication for decades now. It always eminates from a certain subset of people who seemingly fantasize about the US crashing and burning; the ones who can't tolerate the US being the dominant country in the world.

Do you know why the US isn't going down any time soon? It's because every other country in the world is in the economic doldrums as well, some far worse than the US. There is no such thing any longer as the US going down. Not in the global economy of today. If we go down the entire world goes with us because of the interdependency. Nobody is economically independent, least of all China. So if we go down, they go down too, along with the rest of the world in the process.

Well, we are seeing that now, but just because we go down together, doesn't mean we are all going to go back up together. Other countries are seeing that we just brought down their economies due to recklessness, so they are reevaluating their policies wrt to lending to us. Sure China is sitting on 2T of our debt, but we are creating trillions more left and right, so if we can unload trillions of dollars of US debt in this market, so can China.

We are China's biggest customer. If we don't come back up, neither does China.

Other countries brought down their own economies by leveraging themselves in the same way the US did, sometimes to even a far greater degree. We didn't force that leveraging on them. They did it of their own accord.

btw, China holds @ $775 billion of our debt, not 2 trillion.