China: US assets should not be 'politicized'

[Kassz007]

http://finance.yahoo.com/news/China...1.html?x=0&sec=topStories&pos=3&asset=&ccode=

Lots of rumors going around regarding China's treasury holdings and what will happen when they dump them and buy gold. This article seems to dispel that rumor. Doesn't sound as if China will be dumping treasuries and buying gold any time soon.

Particularly interesting quote from Yi that puts the scenario into perspective:

"...shifting even 1 percent of China's foreign reserves into gold would require buying nearly $30 billion worth -- a huge purchase that would push up prices and hurt Chinese buyers..."

 

[Debaser82]

What did Bear Stearns say 24 hours before they collapsed?

 

[Kassz007]

Quote from Debaser82:

What did Bear Stearns say 24 hours before they collapsed?

Who cares? What does Bear Stearns have to do with China dumping treasuries?

 

[trader#21]

Quote from Debaser82:

What did Bear Stearns say 24 hours before they collapsed?

good one

 

[Debaser82]

Quote from Kassz007:

Who cares? What does Bear Stearns have to do with China dumping treasuries?

It just means watch what they do, not what they say.

I don't know if China will buy gold and dump treasuries but If they are they certainly aren't going to anounce it in advance in the media.

 

[Kassz007]

Quote from Debaser82:

It just means watch what they do, not what they say.

I don't know if China will buy gold and dump treasuries but If they are they certainly aren't going to anounce it in advance in the media.

I agree - watch what they do.

But instead of coming out to debunk this rumour, they could have said nothing at all. What motivation is there for China to lie about not dumping treasuries?

Despite the rhetoric, I do not buy the notion that everything China releases is untrue and meant to deceive.

 

[Debaser82]

Quote from Kassz007:



Despite the rhetoric, I do not buy the notion that everything China releases is untrue and meant to deceive.

Neither do I. Maybe they just don't want to overheat the metals markets or they find it in their own interest to publicly support US monetary policy.

As far as China's treasury policy goes I don't have that much of a clue really but clearly the oficial number of 1,054 tons as China's gold holdings is a complete sham.

China is the number 1 gold producer world wide and the export on that gold is very limited really.

 

[zdreg]

it is fair to say at the present china is trying to let the hot air balloon ie US dollar deflate slowly.
they will continue to buy strategic properties around the world unlike the japanese who at their peak bought trophy properties like golf courses etc.

as to US paper they will let the crap mature and not replace it completely. this action is to fool the world into believing that they have not given up on the US dollar as a reserve currency.

 

[Kassz007]

Quote from Debaser82:


As far as China's treasury policy goes I don't have that much of a clue really but clearly the oficial number of 1,054 tons as China's gold holdings is a complete sham.
B]

Do you have a link to the real number?

 

[newguy05]

china is not stupid enough to buy gold, why would they buy gold? who said they will buy gold? stop making shit up.

China is reducing their us treasury holdings, as they realize the potential danger of a dollar crisis. But they are doing it slowly obviously to avoid panic, and using the money to invest heavily in us and european companies quietly.

It's a smart move to diversify into western companies over holding dollar, not to mention the added leverage of greater control(should they choose to exercise it) over the western businesses.