The Great Unwind, China Begins Dumping Treasuries
charts from: http://www.globalpost.com/dispatch/news/regions/americas/united-states/150204/chart-us-foreign-debt
Behind the scenes is an event unfolding that has the market shaking in its boots. Yet you don’t hear this discussed by the mainstream media, let alone investment bankers.
The reason? It is an event that has been talked about throughout China’s rise to prominence. It has been pondered and feared by Western bankers and politicians. The event I am talking about is the dumping of US treasuries by China.
It is common knowledge, that China has been propping up Western economies over the last decade and longer, it is common knowledge that China has the ability to wipe out the US dollar in one quick motion, by dumping their treasuries on the market.
What is not common knowledge are the recent events that have unfolded behind the scenes in which China has begun this very process.
On August 11th, China unexpectedly devalued the Yuan. This came as a shock to the markets, which saw the currency rapidly plummet by 4% and would have continued to do so if not for the extreme intervention of the Chinese Plunge Protection Team.
Since that time, they have been actively and directly engaging in the Forex markets, where they have propped-up the Yuan and artificially maintained their fix with the US dollar.
How did they do this you ask? By selling US treasuries. That’s right, it is being reported, that in the past two weeks alone, China has sold over $106 billion worth of treasuries! But this isn’t all, since the start of this year, China has sold an additional $107 billion worth of treasuries!
You read that correctly, not only is China accelerating their dumping of US treasuries, they have hyper-accelerated this process in the last two weeks, dumping almost as much as an entire year’s worth of US treasuries.
