vincecate wrote:China is buying gold. But will they sell their US bonds? They should. I expect they will figure this out at some point. Just not sure they will figure it out before war starts. Of course by then it is too late.Higgenbotham wrote: Will they put their money where their mouth is by buying gold and selling US bonds?
I think China is already well in the know about the situation. They are buying the rights to resources around the world and have been for over a decade. The pace seems to be increasing and they are buying major industry components as well. Smithfields Foods http://www.nbcnews.com/business/chinese ... 4B11243408 and Canadian Oil http://www.theglobeandmail.com/report-o ... le6403042/ just two recent major acquisitions.
Question: Can a country that holds our T-bonds and other forms of debt securities physically trade them to another for resources and/or goods? Or must they redeem them first and then use the $$ to make the transactions?
If China is trading our debt for resources they could be unwinding or at least hedging their bets on the sly. They are also setting up "colonies" all over Africa and have made significant moves into South America. One of my students is from Brazil and she tells me that Chinese people are everywhere now.
thoughts?
cheers
sy