Japan and China lead flight from the dollar
ltl...@hotmail.com
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Japan and China lead flight from the dollar
By Ambrose Evans-Pritchard, International Business Editor
Last Updated: 12:26am BST 18/10/2007
Japan and China led a record withdrawl of foreign funds from the
United States in August, heightening fears of a fresh slide in the
dollar and a spike in US bond yields.
Data from the US Treasury showed outflows of $163bn (£80bn) from all
forms of US investments. "These numbers are absolutely stunning," said
Marc Ostwald, an economist at Insinger de Beaufort.
Asian investors dumped $52bn worth of US Treasury bonds alone, led by
Japan ($23bn), China ($14.2bn) and Taiwan ($5bn). It is the first time
since 1998 that foreigners have, on balance, sold Treasuries.
Mr Ostwald warned that US bond yields could start to rise again unless
the outflows reverse quickly. "Woe betide US Treasuries if inflation
does not remain benign," he said.
[...]
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Will the Fed still cut interest rate this Oct 31st?
If so, how low will the dollar go?
SKD
> http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/10/16/bcn...
>
> ---------------------
>
> Japan and China lead flight from the dollar
> By Ambrose Evans-Pritchard, International Business Editor
> Last Updated: 12:26am BST 18/10/2007
>
> Japan and China led a record withdrawl of foreign funds from the
> United States in August, heightening fears of a fresh slide in the
> dollar and a spike in US bond yields.
>
> Data from the US Treasury showed outflows of $163bn (£80bn) from all
> forms of US investments. "These numbers are absolutely stunning," said
> Marc Ostwald, an economist at Insinger de Beaufort.
>
> Asian investors dumped $52bn worth of US Treasury bonds alone, led by
> Japan ($23bn), China ($14.2bn) and Taiwan ($5bn). It is the first time
> since 1998 that foreigners have, on balance, sold Treasuries.
>
They brought it upon themselves.
david_h...@hotmail.com
> http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/10/16/bcn...
>
>
> Japan and China lead flight from the dollar
> By Ambrose Evans-Pritchard, International Business Editor
> Last Updated: 12:26am BST 18/10/2007
>
> Japan and China led a record withdrawl of foreign funds from the
> United States in August, heightening fears of a fresh slide in the
> dollar and a spike in US bond yields.
>
> Data from the US Treasury showed outflows of $163bn (£80bn) from all
> forms of US investments. "These numbers are absolutely stunning," said
> Marc Ostwald, an economist at Insinger de Beaufort.
>
> Asian investors dumped $52bn worth of US Treasury bonds alone, led by
> Japan ($23bn), China ($14.2bn) and Taiwan ($5bn). It is the first time
> since 1998 that foreigners have, on balance, sold Treasuries.
>
> Mr Ostwald warned that US bond yields could start to rise again unless
> the outflows reverse quickly. "Woe betide US Treasuries if inflation
> does not remain benign," he said.
>
The US deserve it for defaming Chinese products, restricting Chinese
investment in the USA and bugging China about its "devalued" Yuan,
remembering that they owe us 1.45 trillion dollars
(1,450,000,000,000!!!). So why not pull out of their lousy T-bills,
especially when their dollar is so devalued to the point of
uselessness???!
I was asked why China doesn't use all its dollar reserves to invest in
the US.
The reason China is not about to do it is protectionist noises
emanating from Congress about restricting investments by state-owned
governments. Which is focused primarily on China, but also on Gulf
states and Russia, which are flush with petro-dollars. When the
Chinese government was trying to acquire a small American oil company
back in 2005, it was forced to back off due to bogus "national
security" grounds. All the same, Bush is asking China to open its
banking sector to investment following its ascension to WTO, while
other WTO countries such as Canada still maintain foreign-ownership
restriction on banking, insurance, "cultural industries" as does
Australia.
David Huang
ltl...@hotmail.com
> http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/10/16/bcn...
>
This is the website showing foreign holding of U.S. Treasuries.
http://www.ustreas.gov/tic/mfh.txt
The September data is yet to be included.
ltl...@hotmail.com
>
> - Show quoted text -
Yes. Huawei is currently trying to buy a stake in 3com. The American
response is China threat.
goreng pisang
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