120
China Sells Record Sum of US Debt Amid Signs of Diversification
(www.bloomberg.com)
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
this post was submitted on 16 May 2024
120 points (100.0% liked)
news
24774 readers
489 users here now
Welcome to c/news! We aim to foster a book-club type environment for discussion and critical analysis of the news. Our policy objectives are:
-
To learn about and discuss meaningful news, analysis and perspectives from around the world, with a focus on news outside the Anglosphere and beyond what is normally seen in corporate media (e.g. anti-imperialist, anti-Zionist, Marxist, Indigenous, LGBTQ, people of colour).
-
To encourage community members to contribute commentary and for others to thoughtfully engage with this material.
-
To support healthy and good faith discussion as comrades, sharpening our analytical skills and helping one another better understand geopolitics.
We ask community members to appreciate the uncertainty inherent in critical analysis of current events, the need to constantly learn, and take part in the community with humility. None of us are the One True Leftist, not even you, the reader.
Newcomm and Newsmega Rules:
The Hexbear Code of Conduct and Terms of Service apply here.
-
Link titles: Please use informative link titles. Overly editorialized titles, particularly if they link to opinion pieces, may get your post removed.
-
Content warnings: Posts on the newscomm and top-level replies on the newsmega should use content warnings appropriately. Please be thoughtful about wording and triggers when describing awful things in post titles.
-
Fake news: No fake news posts ever, including April 1st. Deliberate fake news posting is a bannable offense. If you mistakenly post fake news the mod team may ask you to delete/modify the post or we may delete it ourselves.
-
Link sources: All posts must include a link to their source. Screenshots are fine IF you include the link in the post body. If you are citing a Twitter post as news, please include the Xcancel.com (or another Nitter instance) or at least strip out identifier information from the twitter link. There is also a Firefox extension that can redirect Twitter links to a Nitter instance, such as Libredirect or archive them as you would any other reactionary source.
-
Archive sites: We highly encourage use of non-paywalled archive sites (i.e. archive.is, web.archive.org, ghostarchive.org) so that links are widely accessible to the community and so that reactionary sources don’t derive data/ad revenue from Hexbear users. If you see a link without an archive link, please archive it yourself and add it to the thread, ask the OP to fix it, or report to mods. Including text of articles in threads is welcome.
-
Low effort material: Avoid memes/jokes/shitposts in newscomm posts and top-level replies to the newsmega. This kind of content is OK in post replies and in newsmega sub-threads. We encourage the community to balance their contribution of low effort material with effort posts, links to real news/analysis, and meaningful engagement with material posted in the community.
-
American politics: Discussion and effort posts on the (potential) material impacts of American electoral politics is welcome, but the never-ending circus of American Politics© Brought to You by Mountain Dew™ is not welcome. This refers to polling, pundit reactions, electoral horse races, rumors of who might run, etc.
-
Electoralism: Please try to avoid struggle sessions about the value of voting/taking part in the electoral system in the West. c/electoralism is right over there.
-
AI Slop: Don't post AI generated content. Posts about AI race/chip wars/data centers are fine.
founded 5 years ago
MODERATORS
The market can stay irrational longer than you can stay solvent. And you're not going to get the markets to give uo wholesale on the notion of the USA any time soon.
No. Not until dedollarization i imagine. I'm not expecting it anytime soon, but it is sound for China to sell off US debt now while its still worth something
The market can stay irrational longer than you can stay solvent but Elon dumping Tesla stock matters because he owns an enormous fraction of it.
When you’re talking about holdings of US debt the size that China holds, they are the market.
Okay but they aren't. They're diversifying the portfolio, not dumping all their US bonds. But even were they to do so, they're not the market. Leaving aside that foreign governments like China aren't majority holders of US debt even if you add them all up, China is the second largest holder of US debt not #1 (And the UK plus any of the next like 5 other foreign government owners adds up to China)
If China were to dump us debt that would be significant, but let's not venture into the non factual
Yeah ok so it’s $50bn not a liquidation, sure, but that’s not spare change in anyone’s language.
If the 2nd largest holder of US debt starts selling TENS OF BILLIONS of dollars of that debt, that’s notable.
Sure it’s like 5% of their total holdings or something like that but they’re a major player and that’s a major stake. Pretending this is equivalent to some Reddit bro using Robin Hood is asinine.
China selling this stake isn’t following or responding to the market. It’s defining the market.
No. What's asinine is pretending that China is engaging in some sort of 4d chess move to dedollarize by selling off the majority stake in the US, when what theyre actually doing is diversifying their investment portfolio by selling a stake in US bonds equivalent to like 15% of Luxembourgs holdings or 5% of their own holdings and investing in other securities.
You compared this to Elon Musk dumping his tesla stocks. It's just not.