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by Chris Hamilton
SRSRocco Report
China, the largest buyer of US Treasury’s ceases buying Treasury’s…and US Treasury yields collapse?!? The Chinese (and others) buy record amounts of gold and create an imbalance of demand over available supply…and prices collapse?!? These are clearly not the actions of a market attempting to find a balance between price, supply, and demand.
July ’11 to December of ’14, China decreased its holdings of US Treasury debt by $71 Billion (according to the most recent TIC data)…while China continued to run record trade surplus’ with the US. China took in excess of a trillion new dollars since August of 2011 through 2014 and simultaneously sold or rolled off $71 Billion in US Treasury holdings…so China had to find a home for nearly $1.1 trillion new dollars. The chart below highlights China’s annual trade surplus with the US, annual Treasury purchases, and total Treasury holdings.
Continue Reading at SRSRoccoReport.com…