Japan overtakes China as the largest foreign holder of US debt

[Raphael]

China is no longer the biggest holder of US debt - Telegraph

Japan has overtaken China as the largest foreign holder of US debt, the Treasury Department has revealed.

In its latest report, the department said China held $1.2237 trillion of Treasury securities in February, down $15.4bn on January.

Japan's holdings fell $14.2bn to $1.2244 trillion, making it the top foreign holder of US debt for the first time since August 2008.

“With the weakness in the currency and the potential outflows, there’s less need or opportunity for the Chinese to accumulate dollar reserves,” Win Thin, the global head of emerging market strategy at Brown Brothers Harriman & Co, said.

The Treasury Department said total foreign holdings of securities slipped 0.9pc in February to $6.16 trillion, down from a record of $6.22 trillion in January.

US government borrowing has declined sharply with a shrinking budget deficit over the past three years, after expanding rapidly to support the economy in the Great Recession.

The federal deficit fell to $483bn in 2014, its lowest level in six years and below 3pc of economic output for the first time since 2007.

 

[Aepsilons]

Hehe. Interesting.

 

[ChineseTiger1986]

Well, China bought low and sells high.

 

[Lux de Veritas]

Holders of FX reserve will see their value drop to zero,when USA default. The old days central banks hoard gold, not worthless paper.

There is very little thing to be proud of, if FX reserve is excessive. Why not hoard gold? Reason is gold hoarders are attacking USA world order and will be taken down ASAP.

Under this circumstances, the Asian state should spend their savings instead of making their citizen work. States should subsidize and bribe our women to stay home and have babies. Japan as a rich country should have living standards (leisure, holidays, free education and healtcare) like Nordic or Germany and why she is not?

This is an interesting question.

Everyone knows USA live like a parasite on top of the world by printing. But East Asian and petrol Arabs are willing suckers.

The East Asian elites cannot just work us to death, meanwhile seeing our babies dry up due to excessive housing debt.

(Different from others, China FX hoarding did have a positive purpose which I may discuss)

 

[Aepsilons]

Holders of FX reserve will see their value drop to zero,when USA default. The old days central banks hoard gold, not worthless paper.

There is very little thing to be proud of, if FX reserve is excessive. Why not hoard gold? Reason is gold hoarders are attacking USA world order and will be taken down ASAP.

Under this circumstances, the Asian state should spend their savings instead of making their citizen work. States should subsidize and bribe our women to stay home and have babies. Japan as a rich country should have living standards (leisure, holidays, free education and healtcare) like Nordic or Germany and why she is not?

This is an interesting question.

Everyone knows USA live like a parasite on top of the world by printing. But East Asian and petrol Arabs are willing suckers.

The East Asian elites cannot just work us to death, meanwhile seeing our babies dry up due to excessive housing debt.

(Different from others, China FX hoarding did have a positive purpose which I may discuss)

Unfortunately, Singapore is a tiny state of only 5 million. The population of Singapore is not even equivalent to Greater Sapporo Region.

 

[IsaacNewton]

Owning US Debt is not the best form of investment. The money could be used much better to develop China's own industries.

It was just a way for countries to devalue their own currency. China has been doing that for a while, and recently, with Abenomics, Japan has been doing the same. Japanese Yen devalue from 78 yen - 1 dollar back before Abe to 120 yen - 1 dollar now.

 

[Beast]

Chinese are smart. They will slowly let the blood sucker US runs dry.

 

[cnleio]

Good for China, step by step selling U.S debts.

 

[Aepsilons]

Good for China, step by step selling U.S debts.

I don't think China is selling US bonds; the US is just not borrowing as much anymore.

 

[Lux de Veritas]

I don't think China is selling US bonds; the US is just not borrowing as much anymore.

Good for China, step by step selling U.S debts.

Chinese are smart. They will slowly let the blood sucker US runs dry.

Actually China holding of USA debt is quite stable over many years. That is a good sign.

FCUKING Kuan Yew and PAP hold so many USA debt, even more than India. We are stooges of USA because of traitor PAP.

The Chinese should think, why should we hold USD (treasury bond and USA almost the same thing). Why not every other country buy Chinese bond and make CNY world reserve currency. (In my opinion Yuan as reserve currency is a bad for China)

I do not see why a state should be proud of having too much FX reserve. USA has no FX reserve, she has only debt and gold reserve.

The answer is clear. All nations in the world are still servant of USA.

 

[Beast]

I don't think China is selling US bonds; the US is just not borrowing as much anymore.

China is indeed off loading the bond and used them for more strategic investment.

 

[Aepsilons]

I do not see why a state should be proud of having FX reserve. USA has no FX reserve, she has only debt and gold reserve.

Japan has $1.2 Trillion in pension funds, and another $1.3 Trillion in Foreign Reserves. Combined around $2.5 Trillion. Japan is pretty much insulated, and our national debt is domestically owned.

China is indeed off loading the bond and used them for more strategic investment.

Same with Japan. Notice how the 1st, 2nd, and 3rd largest economies in the world are inter-linked.

View attachment 215270

Actually China holding of USA debt is quite stable over many years. That is a good sign.

FCUKING Kuan Yew and PAP hold so many USA debt, even more than India. We are stooges of USA because of traitor PAP.

The Chinese should think, why should we hold USD (treasury bond and USA almost the same thing). Why not every other country buy Chinese bond and make CNY world reserve currency. (In my opinion Yuan as reserve currency is a bad for China)

I do not see why a state should be proud of having too much FX reserve. USA has no FX reserve, she has only debt and gold reserve.

The answer is clear. All nations in the world are still servant of USA.

Why are you ranting about Singapore? Singapore's economy is not even equivalent to Aichi Prefecture, lol.

As for Lee Kuan Yew, the man is dead. Let the dead rest in peace.

 

[Beidou2020]

Buying US debt has been the biggest mistake in Chinese economic/financial history. Yes, HISTORY!

And no, China does not and did not depend on the U.S. for its growth. One of the biggest myths created by the Western propaganda apparatus to scare China.

China should dump all its treasury bonds and use those dollars to buy gold, oil, gas, metals and loan out the money to Chinese corporations to buy strategic assets overseas and even loan out some money to countries in need for geopolitical purposes.

Holding treasury bonds is an utterly useless policy where you earn tiny returns and gets nothing in return as far as strategic assets.

Ending the dollar peg will be another goal.

 

[Aepsilons]

Yes, China should just dump over $1.2 Trillion of bonds down the toilet. You have much sense.

[sarcasm]

 

[大汉奸柳传志]

For Japan that‘s all their pension money...
True loyalty indeed