Who Is Buying China’s Dumped Treasuries?

According to the latest Treasury International Capital report (for October), China unloaded nearly $42 billion in Treasuries in October. In the last 12 months, China has unloaded nearly $150 billion in Treasuries, equivalent to more than one month’s worth of new Treasury issuance by the U.S. Government.

The Zerohedge/mainstream financial media narrative is that China is selling Treasuries to defend the yuan. They hold reserves other than dollars. Why not sell those? They are trying to unload their Treasuries w/out completely trashing the market. Imagine what would happen to the bond market if China announced a bid wanted in comp for $1.1 trillion in Treasuries. They are working with Russia to remove the dollar’s reserve status and the U.S. doesn’t like it which is why there is an escalating level of military aggression toward Russia and China by the U.S.

Too be sure, China’s Treasury selling has contributed heavily to surprising spike up in long term Treasury yields.  But who is buying what China is selling?  Japan has been unloading Treasuries every month since July.  On a net basis, foreigners unloaded $116 billion Treasuries in October.  A colleague in the pension industry told me today that pensions are not buying Treasuries because the yield is too low.

Phil and John (Not F) Kennedy invited me on to their engaging and entertaining podcast show to discuss the chaos that has enveloped the global financial markets including the Fed rate hike, the manipulated take-down of gold and silver and the deleterious effects from the spike up in interest rates.


9 thoughts on “Who Is Buying China’s Dumped Treasuries?

  1. Hello Dave.
    I’m sure I’m not alone, in describing my frustration with the manipulation of precious metals, and how that manipulation is pushing prices lower, for people who have already bought gold and silver, such as myself.

    However, the reason I stopped by was to nominate our Treasurer for “Retarded Comment of the Year by Wall Street.”
    Yes, I know our Treasurer has no connection with Wall Street at this time, but if you were to have an international award for “retarded comment,” then Scott Morrison would clearly win I think.


    1. PHENOMENAL! Debt doesn’t matter cuz housing prices ALWAYS go higher. Hell just give ’em more debt with which to buy the same house, mate. LOL.

  2. It has to be the Exchange Stabilization Fund, or some other contrived mechanism involving Bank of International Settlements. Who else?

    BTW, I strongly believe Exchange Stabilization Fund & Bank of International Settlements are intricately connected with each other. No way to prove this kind of secret knowledge, of course. But kind of like how in Theoretical Physics, you can form theories on Dark Matter or Anti-Matter based on what you can observe about known matter, same principle applies here.

    Nothing about the rising Dollar (or for that matter the bogus Dollar Index) makes any sense whatsoever, when you consider it from the perspective of energy & laws of physics. There is an evil & contrived plot to herd the entire global investment community into the US Dollar right now & slaughter them all systematically.

    1. Yep, I agree.

      Bretton Woods formed the USD as reserve currency, then Nixon abrogated the responsibility to the world to keeping it “worth something”, then the credit bubble expanded it’s tentacles. Who are the USD creditors? When the debt based system reaches max inflation and retracts – maybe with a pop – those creditors will take massive write downs, but still end up with the real asset collateral. Of course they will be bailed out or forgiven or something, then the cycle begins again..

      Is that how this was planned?

      1. Yes, that IS the method and the mechanism right there. The banksters buy or blackmail the patsies into doing their bidding. Anyone who cares to take an honest look can see it with their own eyes.

    2. “There is an evil & contrived plot to herd the entire global investment community into the US Dollar right now & slaughter them all systematically.”

      Ok, but to what end?
      Won’t the so-called plotters, cut their noses to spite your faces?

      1. I suppose, it’s probably their best hope to turn majority of the world into a cashless society? What better way to do it than after herding a big chunk of the world into a single “reserve” currency.

        They probably don’t care about cutting their noses, because once they have so much control, they think they can snap the noses back on. 😉 That’s the best I can think of, trying to reverse engineer the devil’s criminal mind.

  3. Theravaida, your comment and theory is probably the best on this
    comment board in 2016. I too have pondered this very scenario and
    also believe that the current manipulations are leading the masses
    to slaughter.

    1. Thanks.

      After the quality of articles Stewart Doherty contributed to this board (especially his theory on why cash chaos began in India precisely ON THE SAME calendar day of US Elections), hard for me to claim anything better. If I were to nominate “The best of 2016” for this blog, I would definitely choose this article @ link below:

      Human Derivatives and Gold – by Stewart Dougherty


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