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China trimmed its holdings of US Treasuries in November to the lowest level since 2008, diverging from a global trend that saw total foreign ownership of the debt instruments hit a record high.
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Beijing’s stockpile fell to US$682.6 billion in November, down from US$688.7 billion in October, according to US Treasury Department data released on Thursday.
That marks the lowest level since September 2008 and a nearly 10 per cent drop since last January, according to financial data provider Wind.
Shao Yu, chief economist with the Sci-tech Innovation Management Research Centre at Fudan University, said ...
“The massive accumulation of debt resembles a Ponzi scheme, where larger volumes of new debt are used to replace the old. China doesn’t want to play this game any more,” he said.
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Transactions on a new China-led digital currency platform have surged to over $55 billion, a new report shows, the latest sign that efforts to build alternatives to dollar-dependent global payment systems are gaining traction.
Data crunched by the Washington-based Atlantic Council showed the prototype 'mBridge' platform, which is being tested by central banks in China, Hong Kong, Thailand, the United Arab Emirates and Saudi Arabia, had now processed more than 4,000 cross-border transactions.
The cumulative $55.5 billion value of those payments represents a roughly 2,500-fold increase since the project's early days of 2022, with the digital yuan estimated to now account for approximately 95% of the volume.
The e-CNY, as it is also known, remains the world's largest live central bank digital currency experiment.
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Hong Kong will sign an accord with Shanghai next week to establish a cross-border gold trade clearing system, a move the finance chief has said will bolster the city’s push to become an international trading hub for the precious metal.
Financial Secretary Paul Chan Mo-po revealed on Sunday that the city and the Shanghai Gold Exchange would sign a memorandum of understanding at next week’s Asian Financial Forum to pave the way for greater connectivity between the two markets.
“We are accelerating the push to establish a central clearing system as a vital piece of financial infrastructure, to enhance the reliability and efficiency of gold trading and delivery in Hong Kong, lower transaction costs and increase liquidity,” Chan said on his weekly blog.
He added that the goal was to launch trial operations within the year and invite the Shanghai Gold Exchange to take part.
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Because New York no longer offers what it once did - an honest venue for price-discovery.Goodbye New York, hello Shanghai.
If there are no bidders the Fed has to " Print Money & Buy them " as the last resortSo China is selling its T-bills, who's buying them?
It's not clear if they were actually selling or just not replacing bills that matured.So China is selling its T-bills, who's buying them?
It's not clear if they were actually selling or just not replacing bills that matured.
This is a good question. An institutional (or state) holder of Treasuries, wants to sell them.So China is selling its T-bills, who's buying them?
If there are no bidders the Fed has to " Print Money & Buy them " as the last resort
It's not clear if they were actually selling or just not replacing bills that matured.
This is a good question. An institutional (or state) holder of Treasuries, wants to sell them.
Does the Fed buy T-bills from holders? I had thought they only bought them at Treasury auctions. Once someone else bought them, it's someone else's problem.
Would a discounted, pre-owned T-bill, closer to its maturity, sell at a discount to bonds offered at Treasury auctions?
And where will they go? Germany, which is destroying itself FASTER? Britianistan, where apart from City of London, industry has been almost-completely destroyed? Where the nation has become an Islamic model of Paradise - a brothel filled with virgins, for goat-herders to satisfy themselves with?Ray Dalio Sees General Diversification Away From the US
Mate, u have it in Reverse.^^^
Yeah. Ray Dalio...should have remembered. What's he saying now? 25 percent gold?
When I read "diversification" I was thinking, moving "money" to other "investments." As in, foreign stawwwkkkkzzzzz....
When I hear of someone buying gold, I don't think of diversification (although it is) - I think of, cashing out. Going off the grid. Going dark.
Yeah, that's why I don't pay close attention.
But I agree. Maybe it's the way I phrased it, or maybe the language barrier. (I spent a month in Australia; there's English, and there's English...ya know?)
Bloody hell, mate. Hard to master the bloody lingo...
Us Aussies do have a unique expression of the English language
A fine story mate. A memory long held.Bloody hell, mate. Hard to master the bloody lingo...
I got stories. I was on the carrier Carl Vinson, port-of-call in Perth and Hobart, your winter 1994. In Perth, I couldn't get off the day we were anchored and had Liberty Call...I was on duty. So I was kind of alone, when I got off the next day (Duty-Section change) with my laundry.
There was a fine laundromat a few blocks from the pier the water taxi was using. I dumped my clothes into a couple of washers, fed it your funny-money, and went a few doors down for a "bucket of piss."
And walked right into a local-government council meeting, there at the pub...and what fine gents. They heard me order my piss, knew I was another Yank, and invited me over to have a seat. Somehow it got out that I knew something of Yankee government (which I did, as a former PoliSci/Pre-Law student in Ohio) and they wanted to talk about our system, their system, the problems the US Navy caused, with its inevitable AWOL cases. Happens every time there's a Navy ship rolling in.
We talked more, about how foreigners would get into the US, through marriage to US nationals, and how the Australian rules were different. How it was handled far-more locally; and how even marriage, even if that marriage had been far in the past, was not an automatic ticket. I should point out that NEVER were these gentlemen patronizing or lecturing. They were intensely curious, and eager to share their own experience. I had about six pints of beer - which I wasn't prepped for, I'm guessing it was 8-percent alcohol. It hit me hard.
And I had forgotten about my clothes. As I remembered, about three hours later, I excused myself and staggered back to the laundry. And my machines were...empty. NO TRACE. Back behind the counter was this red-headed young woman, I expected probably a single mum....sure kept her appearances up. Exactly my type.
I asked about the clothes. "Oh, I saw the machines empty; and then saw they were Navy clothes; so I took them out, and put them in a dryer, and then folded them." They were neatly folded and stacked. Holy sheep-shearing! To make it worse, she refused any payment.
I'd have taken her out to dinner that night, but all that potent beer hit me hard. I was obviously in my cups. ANOTHER opportunity lost...
..I was on duty. So I was kind of alone, when I got off the next day (Duty-Section change) with my laundry.
with its inevitable AWOL cases
The Reserve Bank of India's holdings of US Treasury bonds have fallen to a five-year low as India pushes to support rupee versus the US dollar and diversify its forex reserves, joining a broader shift by some major economies out of the world’s biggest bond market.
RBI's holdings of long-term US bonds have dropped to $174 billion, down 26% from a 2023 peak, according to US government data made available last week. US Treasury bonds now account for one-third of India's forex assets, according to RBI data, compared with 40% a year prior.
As gold and other alternatives take a larger share of RBI's forex reserves, the shift mirrors moves by bigger holders like China, reviving questions about US exceptionalism and the role of its debt as a reserve asset. ...
Bloomberg said:Chinese regulators have advised financial institutions to rein in their holdings of US Treasuries, citing concerns over concentration risks and market volatility, according to people familiar with the matter.
Officials urged banks to limit purchases of US government bonds and instructed those with high exposure to pare down their positions, the people said, asking not to be identified discussing private deliberations. The directive doesn’t apply to China’s state holdings of US Treasuries.
Communicated verbally to some of the nation’s biggest banks in recent weeks, ...
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