China has divested 97 percent of US holdings (treasuries)

[JazzyTallGuy]

Originally Posted by SilverOne

China Has Divested 97 Percent of Its Holdings in U.S. Treasury Bills | CNSnews.com

If this is true then look out for the bottom......

Actually it's a good sign. Treasury bills have short term maturites of a year or less. That fact they got rid of them and the yields of of T-bills haven't signficantly risen means that the market is liquid and there was sufficient demand for the bills.

China still holds plenty of longer term U.S. Treasury Bonds.

However, China’s overall appetite for U.S. debt increased over a longer span than did its appetite for short-term U.S. Treasury bills.

In August 2008, before the bank bailout and the stimulus law, overall Chinese holdings of U.S. debt stood at $573.7 billion. That number continued to escalate past May 2009-- when China started to reduce its holdings in short-term Treasury bills--and ultimately peaked at $1.1753 trillion last October.

As of March 2011, overall Chinese holdings of U.S. debt had decreased to 1.1449 trillion.

Also if China sold those T-Bills they got DOLLARS for them. The next question is what is China going to do with all those dollars in FOREX reserves.

[subsound]

Originally Posted by SilverOne

Page not found | zero hedge (http://www.zerohedge.com/article/real-margin-threat-600-trillion-exchange-derivatives-moving-central-clearing-multi-trillion - broken link)-
No matter which way you split the hair, the US is in big trouble, whether it is China or some big bank dumping it's treasuries to beat the dropping value of the US dollar or the derivatives market that has not been dealt with, just kicking the can down the highway......

zerohedge.com and read the following article the link is not working



The Real "Margin" Threat: $600 Trillion In OTC Derivatives, A Multi-Trillion Variation Margin Call, And A Collateral Scramble That Could Send US Treasurys To All Time Records...

I love it. I would paraphrase this as "The article may be wrong in specifics, but I believe the general concept no matter what the facts actually say and how many times the basis of my beliefs have been refuted." Which really isn't logic at all, it's more of what you would see in a patient with paranoid schizophrenia.

Oh, if you believe Zerohedge that states clearly "From tech stocks to high gas prices, Goldman Sachs has engineered every major market manipulation since the Great Depression -- and they're about to do it again." {The Great American Bubble Machine - Matt Taibbi (emphasis added)} or how about from the main page "The alumni of Goldman Sachs as a powerful cabal at the helm of U.S. policy, with the Treasury and the Federal Reserve colluding to preserve the status quo."...

...then please be sure that your tin foil hat is on nice and snug.