China invests in Americas future...

cohodk

http://www.wsj.com/articles/china-gobbles-up-longer-term-u-s-debt-in-2014-helping-keep-yields-down-1424381644


The doom and gloomers will want you to focus on a small reduction in overall holdings but really the story is in the purchasing of long term US debt. China has sold some short term debt and purchased the longer term. Clearly they are not "dumping" Treasuries. Clearly they are not concerned with the future of America.

Clearly they need to invest in their weather forcasting, http://www.chinatopix.com/articles/38014/20150218/chinas-national-weather-service-blames-inaccurate-forecasts-decline-russian-ruble.htm.

Clearly China is a long, long way from having a currency that supplants the US dollar in international trade and finance.

ricko

Are they long term investing because they believe they will 'own' America in the future??? Cheers, RickO

derryb

China is investing in their own future.

China is tossing bond grenades in its currency war.

"China used those bond purchases to drive the US dollar up and to keep the Chinese currency competitively “under-valued” to predatorily under-cut the sales prices for US manufacturers."

The rose colored glass wearers want you to believe the Chinese government sees the US as an investment. In reality it is nothing but a customer.

Justacommeman

Somewhat related. I just had a EB-5 discussion with a friend over dinner who is raising money for a development. He basically said EB-5 has made his life a piece of cake.

Under the government's EB-5 Immigrant Investor program, foreign investors can get conditional visas that allow them and their families to live, work and attend school in the U.S. To qualify for the visa, they must invest at least $1 million in a new or recently created business, or $500,000 for businesses in rural or high-unemployment areas. In most cases the dollar amounts actually invested dwarf the minimums.

The investment must be demonstrated to have created or preserved at least 10 full-time jobs for U.S. workers within two years. Assuming this condition is met, investors and their families graduate to permanent resident status, and can apply for full citizenship three years later. A very subjective measuring stick to be sure. China's growing elite has snatched up most of the available VISA's.

MJ

cohodk

<< <i>China is investing in their own future.

China is tossing bond grenades in its currency war.

"China used those bond purchases to drive the US dollar up and to keep the Chinese currency competitively “under-valued” to predatorily under-cut the sales prices for US manufacturers."

The rose colored glass wearers want you to believe the Chinese government sees the US as an investment. In reality it is nothing but a customer. >>



Well, as they say, the customer is always right.

Exactly right MJ. The Chinese elite want nothing more than to leave their country.

jmski52

There seems to be a discrepancy in the new reporting on this subject, but it's hard to tell if you have to subscribe to the WSJ just to read their story:

http://www.wsj.com/articles/china-gobbles-up-longer-term-u-s-debt-in-2014-helping-keep-yields-down-1424381644

Breitbart reports otherwise.

It seems to me that the net effect is to manipulate long term rates while trying to devalue the yuan at the same time. Which is exactly what the Fed was doing with Twist. Correct?

Everybody's pushing their due dates further and further out while printing more and more of them. 100-year bonds, anyone?

jmski52

Under the government's EB-5 Immigrant Investor program, foreign investors can get conditional visas that allow them and their families to live, work and attend school in the U.S. To qualify for the visa, they must invest at least $1 million in a new or recently created business, or $500,000 for businesses in rural or high-unemployment areas. In most cases the dollar amounts actually invested dwarf the minimums.he

Yep, we had one of those in a small town nearby who took in a bunch of local investment money and local bond issues to build a "factory". He left everyone on the hook for millions, left a "factory" half-built with millions in unpaid construction costs, and they finally caught him in California and arrested him. Unfortunately, nobody got any of their investment money back. Maybe that's not exactly how things work in China.