Chinese Economics Thread

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antiterror13

Brigadier
tphuang said:
China's dollar bond sale issuance in Saudi Arabia for $2B was overwhelmed with $40B in bids

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wowww, great. Wondering whether China need to ask "permission" to the US for issuing US$ bond ?

I think the first time ever in history that the this Chinese bond yields are lower than the Treasuries ... it shows you what it means :rolleyes:
 
Xiongmao

Xiongmao

Junior Member
Registered Member
antiterror13 said:
wowww, great. Wondering whether China need to ask "permission" to the US for issuing US$ bond ?

I think the first time ever in history that the this Chinese bond yields are lower than the Treasuries ... it shows you what it means :rolleyes:
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200 IQ move right there, whenever the US Treasure department holds auctions to collect USD, the PBOC can issue its own bonds on the same day and mess with the US financial system.
 
Sinnavuuty

Sinnavuuty

Senior Member
Registered Member
proelite said:
Look at me. I'm the federal reserve now.
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About that:
https://twitter.com/i/web/status/1858479263407899029
1) China quietly issued US dollars Chinese sovereign bonds in Saudi Arabia, which were snapped up immediately by international buyers and over-subscribed by 19.9X.
2) China is taking a large part of the USD that it raise to finance Global South Countries at the edge of USD loan defaults.
3) In exchange China is getting a deal for cheap energy and commodities from these Global South countries payable in RMB.
4) You want USD Milkshake? China will send all the USD back to the U.S. to buy “Real Things”.

Yes there is USD Milkshake, but China will send back all the useless USD to the U.S. and end up with REAL THINGS like
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,
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, energy and commodities!!!
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https://twitter.com/i/web/status/1858488174168637943
https://twitter.com/i/web/status/1858501106545950896
https://twitter.com/i/web/status/1858527828150509787
 
A

AndrewS

Brigadier
Registered Member
Z

zbb

Junior Member
Registered Member
AndrewS said:
Hm... So when China issues a 3 year USD government bond - the market charges them less interest.

So China has a higher credit rating that the USA now?
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Even though the US can always just print USD and therefore has no risk of default, there is the risk of the US confiscating your holdings like what happened to $300 billion of Russian assets. Apparently, there are entities with excess USD who are worried enough about the possibility of US asset seizures that they are willing to buy lower interest Chinese USD bonds instead. The fact that these bonds are issued in Saudi Arabia gives a good idea where the investors in these bonds are likely from.
 
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G

gelgoog

Lieutenant General
Registered Member
zbb said:
Even though the US can always just print USD and therefore has no risk of default, there is the risk of the US confiscating your holdings like what happened to $300 billion of Russian assets. Apparently, there are entities with excess USD who are worried enough about the possibility of US asset seizures that they are willing to buy lower interest Chinese USD bonds instead. The fact that these bonds are issued in Saudi Arabia gives a good idea where the investors in these bonds are likely from.
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You just have to remember the reaction of the US government under the Democrats to the murder of Jamal Khashoggi.
You also had Trump promise the Saudis basically unlimited support for their war in Yemen, and then Biden comes in and pulls out much of that support. The air defense umbrella over their oil facilities provided by the US was also a major fail.
The leadership in Saudi Arabia does not feel 100% comfortable with their dependency on the US for military and economic terms that is certain.
 
coolgod

coolgod

Colonel
Registered Member
Maybe this is also a sign that the Petro-dollar is over. The USD isn't anchored in oil anymore, it is anchored in Chinese goods. If one day China stops accepting USD, the dollar hegemony will come crashing down. Notice how we don't hear anymore nonsense about kicking China out of SWIFT anymore.
 
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