Russia Liquidates Its US Treasury Holdings

As long as you put politics above economics you'll lose. The cockier you are, the harder you fall.

Your dead wrong.Putin is the prime examle.20 YEARS of politics and nothing else and keeps going.No one can make him fall, i mean no one.
 
Your dead wrong.Putin is the prime examle.20 YEARS of politics and nothing else and keeps going.No one can make him fall, i mean no one.

I take your point. Putin is a very unique outlier - Russia is a pure kleptocracy with no real exports other than Kaspersky, weapons, and hydrocarbons. To bet on Russia is disturbingly simple - bet on oil.
 
I take your point. Putin is a very unique outlier - Russia is a pure kleptocracy with no real exports other than Kaspersky, weapons, and hydrocarbons. To bet on Russia is disturbingly simple - bet on oil.

The problem is that the oil is not Russia only.Bet on Putins buddies;)
 
And even that might be too late, plus mr Trump is doing a great job for Putin smothering Europe and China with tariffs.Let the kleptocracy go on, thanks mr Trump!

But to be honest, Putin is a very comfortable figure for the US, besides his ocasional bounces here and there(Ukrain, Syria, etc.)Fed makes trillions on russians, all production companies, from nails to spaceships, are foreign, pension age which just was rised yesterday greater than the life expectancy,the science is destroyed and the list go on ...Putin fooked everything up and is a traitor.Should be sued in Hague for henocide. So don`t call Trump traitor guys, Putin is on his leash actually.
 
Exactly. Uninformed talking heads like to quote Chinese US Treasury Holdings as some sort of ‘nuclear option’ leverage they have on the US. Which is total BS. If China crushes the dollar they slit their own throats. And if you take in close to half a trillion US dollars net surplus every year you have to park it somewhere that accepts dollars.

I do not understand this logic! " If china sell its US Treasury Holding that will crush the dollar?!" Am I missing something?
:sneaky:
 
I do not understand this logic! " If china sell its US Treasury Holding that will crush the dollar?!" Am I missing something?
:sneaky:

Yes - noticeable selling of US Treasuries would depress the dollar. If, for example, China unloaded $1.2T of US Treasuries it would seriously weaken the dollar and strengthen the Yuan. The cornerstone of Chinese Central Party Planning is to maintain through diligent active ongoing manipulation a weak-ish valuation of the Yuan in relation to the dollar.
 
Yes - noticeable selling of US Treasuries would depress the dollar. If, for example, China unloaded $1.2T of US Treasuries it would seriously weaken the dollar and strengthen the Yuan. The cornerstone of Chinese Central Party Planning is to maintain through diligent active ongoing manipulation a weak-ish valuation of the Yuan in relation to the dollar.

Do you have any documentation to support your assertion? Because I would like to learn something new! What I understand is that, selling US treasury will increase treasury yields, which in turn strengthen the dollar and increases its value.
https://www.thebalance.com/treasury-yields-3305741
 
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Do you have any documentation to support your assertion? Because I would like to learn something new! What I understand is that, selling US treasury will increase treasury yields, which in turn strengthen the dollar and increases its value.
https://www.thebalance.com/treasury-yields-3305741

This is all speculative in nature. And I’ll be the first to admit that my own currency trading has been very limited to inter market spreads. I hope we never have to find out, but from what I have read the US Fed has several technical options for such a scenario - including the Fed buying every Treasury that China sold.

Theoretically the only scenario where China sells $1.2T in Treasuries and the dollar does not noticeably weaken would be if the Chinese kept the sales proceeds on hand in cash (US Dollars).
 
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