American Economics Thread
- Thread starter Bernard
- Start date
US will prob ask China to buy more US treasuries in the March 18 meeting. In exchange what will the Us offer?
The US stock market is like a bomb at this point... a real selloff will destroy everyone. The only way to save it is to keep yields down, which means someone has to buy more bonds.
Spicy. Let me remind you that just 2 months ago the yield was around 0.85 per cent and now it just closed at 1.63 per cent.
And the best part is that Biden now is planning for an infrastructure bill which could go up to 4 (could go for less) trillion dollars. Lol
Even 1.63% is near historic lows.
The question is how high treasury yields will increase and who is going to be buying
And the FED has now discontinued the measurement of M2 money supply, seems they got scared that people are waking up to the fraud.
The ECB (European Central Bank) is also increasing its printing by a lot as well.
Japan, well Japan is in shambles. The BOJ (central bank of Japan) now owns a full 50% of the entire Japanese stock market. And lets not forget that the central bank is now holding more US treasuries than China (last time i checked). Imagine holding US Treasuries when the US is planning to inflate its debt to heaven lol
So China's position now is extremely strong now. With strong projected growth, good bond yields, starting to tighten a bit the monetary policy, the good management of the covid, Xi's plan for better quality gdp growth all this is making the China's bonds a safe heaven for international investors (in 2008 crisis the safe heaven status was the US treasuries) which in turn helps internationalising the yuan.
China will enter the Alaska meeting with the US from a position of strength and confidence in its economy