China has become the largest foreign holder of US government debt!

China has become the largest foreign holder of US government debt!
Nov 19, 2008 01:32
JIMMYB Points: Join Date: Feb 7, 2007 Status: offline	China has replaced Japan to be the largest foreign holder of US government debt. China's holdings of US treasury bonds, notes etc have risen to $585bn. However, Japan has decreased its holdings to $573.2bn. Great Britain still remains the third largest holder that holds $338.4bn. Should we be happy or sad about this news? We all know that US is in recession now. Is it wise to keep buying US debt?

Nov 19, 2008 01:32

JIMMYB
Points:
Join Date: Feb 7, 2007
Status: offline

China has replaced Japan to be the largest foreign holder of US government debt. China's holdings of US treasury bonds, notes etc have risen to $585bn. However, Japan has decreased its holdings to $573.2bn. Great Britain still remains the third largest holder that holds $338.4bn.

Should we be happy or sad about this news? We all know that US is in recession now. Is it wise to keep buying US debt?

Nov 19, 2008 23:03	#1
MARRIE Points: Join Date: Jan 7, 2008 Status: Offline	Round this July, It was said that Chinese government request US government to finance 2 nationalized housing mortgage corp before china determined to reduce investment by 25% because INTERNAL stats has shown indicators of collapse. Jimmy, Pros is much more than cons for this. In order to merge with international financial system, tuition fees and member fees is a must.

Nov 20, 2008 03:38	#2
JIMMYB Points: Join Date: Feb 7, 2007 Status: Offline	Jimmy, Pros is much more than cons for this. In order to merge with international financial system, tuition fees and member fees is a must. Agree! Maybe I am too pessimistic. So far, China's investment in US have all failed.

Nov 20, 2008 21:50	#3
MARRIE Points: Join Date: Jan 7, 2008 Status: Offline	Unrealized loss are defenitely not a loss. The reality is uptil now, no currencies are as hard as USD as foreign reserves in current economic turmoil.

Nov 24, 2008 03:26	#4
JIMMYB Points: Join Date: Feb 7, 2007 Status: Offline	The reality is uptil now, no currencies are as hard as USD as foreign reserves in current economic turmoil. Maybe, we should build a new international monetary system. We shouldn't peg our currencies to US dollar. Why not make gold as base currency?

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