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

[Michael K.]

http://cnsnews.com/news/article/china-has-divested-97-percent-its-holdin

China Has Divested 97 Percent of Its Holdings in U.S. Treasury Bills
Friday, June 03, 2011
By Terence P. Jeffrey

(CNSNews.com) - China has dropped 97 percent of its holdings in U.S. Treasury bills, decreasing its ownership of the short-term U.S. government securities from a peak of $210.4 billion in May 2009 to $5.69 billion in March 2011, the most recent month reported by the U.S. Treasury.

Treasury bills are securities that mature in one year or less that are sold by the U.S. Treasury Department to fund the nation's debt.

Mainland Chinese holdings of U.S. Treasury bills are reported in column 9 of the Treasury report linked here.

Commentary by Richard Eastman of Yakima, Washington, USA:

You need to get this -- its bigger treason than anything we have seen so far.
 
Bernanke just swaped trillions Fed dollars for China's US securities SO CHINA CAN OUTBID ON EVERY PROPERTY THAT COMES UP FOR SALE IN THE USA      

We have been sold out by the Federal Reserve scam -- this time all the way.

Rothschild and China saw the Social Credit repudiation of debt coming  -- so they had their stooge Ben Bernanke -- use the Fed's discount power and open market operations to buy all of China's debt -- and Rothschild's too doubltess  -- with new dollars which are claims on your labor, on anything any American sells  -- so from now on we bid against Chinese with trillions of our dollars when we ourselves are starved of dollars  -- and all you DUNDERHEADS  swapped your dollars for worthless gold -- beliving Ron Paul and Gerald Celente and saying "Phooey on You" to the populists and social creditors who warned you again and again  -- needed dollars in the hands of Americans swapped for sterile gold which doesn't circulate and therefore doesn't give anyone a paying job etc. or pay the mortgage or rent or buy inventories to sell or give us demand to keep our businesses opened...  

Adjust to the new reality: the Chinese don't own the debt any more  -- they own new dollar deposits from the fed.
 
The fed now owns the debt -- but the debt is no longer our problem -- trillions of ready American dollar liquidity (spendable cash)  in the hands of China is the new hurricane on its way through the American's America.
 
The fed was never on our side -- it was always on the side of creditors  -- the Rothschilds (a term which includes Goldman-Sachs, the Rockefeller interests, and other investment banking interests) and the ruling elites of China are the ones Bernanke serves.
 
The Chinese can now buy up America in a climate that Rothschild and Fed has made deflationary, forcing Americans to put their land and businesses and homes on the auction block in distress sales etc.
 
The creditors (Chinese elites, international financial elites/organized crime) thus have given themselves all the money -- that was never ours, that was never really American money, but always -- since world war one for which the Fed was designed -- always an international money   -- as I was saying the creditors gave themselves all the money and created the deflationary depression inside the USA so that all the choice properties would be put on sale, so that bankrupt states and cities and counties and the federal government would put all of their land and paying assets (parking meters sold to J P Morgan for example)  and the government also sells its deregulation -- allowing generic drugs to become retro-patent violations, giving monopolies on drugs that were competitive -- with fantastic increases in price to the consumer  -- as I say - there is not inflation -- only monopoly price increases -- the creditors are killing you with deflation while building up the invading foreign hoards with an inflation of dollars from the "QE" buying of Chinese held US securities for dollar cash...

SO THEY REFUSED TO GIVE US "INFLATION"  -- EVEN THOUGH INFLATION IS THE ONLY CURE FOR DEPRESSION  -- AND TO AVOID FUTURE DEPRESSIONS IT MUST BE INFLATION THAT DOES NOT SHRINK AND GO NEGATIVE TO DEPRESSION DUE TO INTEREST PAYMENT -- AND THAT WOULD TAKE AN ENTIRELY DIFFERENT SYSTEM  -- A SOCIAL CREDIT SYSTEM -- WHICH YOU HAVE NO INTEREST IN BECAUSE YOU WANT A RON PAUL GOLD SYSTEM WHICH IS THE MOST DEFLATIONARY SYSTEM OF ALL!!!!!
 
Everyone who has sold you on Austrian School economics and the gold system and on the evils of inflation and the necessity of austerity to fight inflation  -- all of these people  have the blood of America and of human freedom on their hands...

The Fed is just a pile of un-collectable IOUs now. It has all the securities that Americans now (thanks to QE) -- the creditors having preferred liquidity to interest  --  and as the Fed made a gift exchange of dollars for un-collectable US securities -- it sweetened the gift with the super deflation which has devastated the US.

Again I tell those who say there is inflation in the US that there is not -- that the higher prices are the result of monopoly pricing and fewer suppliers, not more dollars chasing the economic pie which is what monetary inflation really means -- and in the case of food, worldwide high prices are the direct result of a deliberate merchant banker ("Rothschild") policy to reduce supplies -- lower quality food in smaller boxes at higher prices, in case you didn't notice.   The printing press did not raise the price of food and gas.  Celente and Ron Paul and Alex  Jones have been handing you a line of propaganda  -- as well as telling you to buy gold  -- which makes the real killer, deflation, that much worse.
 
The Chinese become the first spenders of the new money  -- but not even that money goes into the hands of Americans  - because the Chinese won't buy it from us  -- they wait until we go bankrupt and are foreclosed, then they buy the property from the bank -- so the money they spend never enters domestic economy circulation where it will do any of us any good...

It should be noted that Michael Porter was a featured speaker at the National Governor's Association winter meeting during which it was announced that Christine Gregoire (Governor, State of Washington) had signed an accord with COMMUNIST Chinese Party officials for "greater sub-national cooperation" - and that COMMUNIST Party officials were invited to the next National Governor's Association meeting in July in Salt Lake City.

http://www.c-span.org/Events/Nations-Go ... 7419819-3/  

If the United States - our Governors in particular,  accept COMMUNIST Chinese money, they are accepting the COMMUNIST Chinese system of State Capitalism.  What that means is our government will become like the Chinese system of state control and oppression of labor, a criminal ruling class, and complete control of your "use of resources" - meaning complete government control of your life.

This is it people.   The Chinese way - or the American way .... and there is nothing in between so there can be no compromise on this point.  We need to bring down this entire system of Trojan Triangles, lifetime "learning"  (re-education), central planning of the economy...   all of it.  

[Michael K.]

BTW- Richard Eastman is a former college teacher with a degree in economics.  His theories are based on the works of the social credit economists Douglas and Kitson, primarily.  

This is a huge story:  In this year of global drought and famine, the Chinese now have enough dollar currency to buy our entire harvest, leading to conditions reminiscent of those of the Great Irish Famine, where starving tenant farmers watched as their entire crop was exported.  The only outcome can be social unrest and widespread suffering.

[Anonymous]

Can you confirm this, I have not heard this mentioned elsewhere that the FED turned all of the Chinese government bond holdings into actual cash deposit accounts.

[Michael K.]

Dear Bluejelly,

In response to a good question, I have found some corroboration on the web, although all sources site CNS news as the primary.  Yet, the Ron Paul website develops the story some more:

http://www.dailypaul.com/166694/china-has-divested-97-percent-of-its-holdings-in-us-treasury-bills

Title is a little misleading
Submitted by wauhoo on Fri, 06/03/2011 - 18:24.

I saw that earlier on Drudge and gasped. But after reading the article, it is the short term notes that they have divested by 90%. The long term notes have decreased from $1.17T to $1.14T. Long way to go there.

Absurdities in finance,
Submitted by Najam on Fri, 06/03/2011 - 21:13.

pls read - "U.S. Offers Foreign Aid to Countries Holding Billions in Treasury Securities"
http://www.foxnews.com/politics/2011/06 ... -foreign...

- The State Dept did not respond to a request for comment.
- U.S. rating under review for a possible downgrade.

Checking out the Faux News story:

http://www.foxnews.com/politics/2011/06/02/us-offers-foreign-aid-to-countries-holding-billions-in-treasury-securities/

U.S. Offers Foreign Aid to Countries Holding Billions in Treasury Securities

Published June 03, 2011

The United States is providing hundreds of millions of dollars of foreign aid to countries that it borrows billions from, according to a report by Congress's research arm.

The Congressional Research Service released a report last month, a copy of which Fox News exclusively obtained, showing that in fiscal year 2010, the latest year that data was available, the U.S. handed out a total of $1.4 billion to 16 foreign countries that held at least $10 billion in Treasury securities, including China ($27.2 million), Brazil ($25 million), Russia ($71.5 million), India ($126.6 million), Mexico ($316.7 million) and Egypt ($255.7 million).

China is the largest holder of U.S. Treasury bonds with $1.1 trillion as of March, according to the Treasury Department. Brazil held $193.5 billion, Russia had $127.8 billion, India owned $39.8 billion, Mexico held $28.1 billion and Egypt had $15.3 billion.

Click here to read the report.

The foreign aid to these countries is earmarked for a variety of causes, such as HIV/AIDs prevention, combating weapons of mass destruction, fighting tuberculosis, and counterterrorism efforts.

Sen. Tom Coburn, R-Okla., who requested the report, sounded the alarm.

"Borrowing money from countries who receive our aid is dangerous for both the donor and recipient," Coburn said in a written statement. "If countries can afford to buy our debt, perhaps they can afford to fund assistance programs on their own.

"At the same time, when we borrow from countries we are supposedly helping to develop, we put off hard budget choices here at home," he added. "The status quo creates co-dependency and financial risk at home and abroad."

The State Department did not respond to a request for comment.

The report arrives as lawmakers in Washington battle over the conditions for increasing the nation's ability to borrow money before defaulting on its obligations, which is scheduled to happen in August. The government reached its $14.3 trillion borrowing limit last month. Both sides agree that spending cuts are needed, but Republicans refuse to raise taxes that Democrats are insisting on.

President Obama has met privately with both sides this week over the issue, but no progress has been made. Moody's Investors Service said Thursday that if the parties don't make progress soon, it would place the U.S. rating under review for a possible downgrade.

[Michael K.]

http://ca.news.yahoo.com/china-ratings-house-says-us-defaulting-report-054309883.html

China ratings house says US defaulting: report

A Chinese ratings house has accused the United States of defaulting on its massive debt, state media said Friday, a day after Beijing urged Washington to put its fiscal house in order.

"In our opinion, the United States has already been defaulting," Guan Jianzhong, president of Dagong Global Credit Rating Co. Ltd., the only Chinese agency that gives sovereign ratings, was quoted by the Global Times saying.

Washington had already defaulted on its loans by allowing the dollar to weaken against other currencies -- eroding the wealth of creditors including China, Guan said.

Guan did not immediately respond to AFP requests for comment.

The US government will run out of room to spend more on August 2 unless Congress bumps up the borrowing limit beyond $14.29 trillion -- but Republicans are refusing to support such a move until a deficit cutting deal is reached.

Ratings agency Fitch on Wednesday joined Moody's and Standard & Poor's to warn the United States could lose its first-class credit rating if it fails to raise its debt ceiling to avoid defaulting on loans.

A downgrade could sharply raise US borrowing costs, worsening the country's already dire fiscal position, and send shock waves through the financial world, which has long considered US debt a benchmark among safe-haven investments.

China is by far the top holder of US debt and has in the past raised worries that the massive US stimulus effort launched to revive the economy would lead to mushrooming debt that erodes the value of the dollar and its Treasury holdings.

Beijing cut its holdings of US Treasury securities for the fifth month in a row to $1.145 trillion in March, down $9.2 billion from February and 2.6 percent less than October's peak of $1.175 trillion, US data showed last month.

Foreign ministry spokesman Hong Lei on Thursday urged the United States to adopt "effective measures to improve its fiscal situation".

Dagong has made a name for itself by hitting out at its three Western rivals, saying they caused the financial crisis by failing to properly disclose risk.

The Chinese agency, which is trying to build an international profile, has given the United States and several other nations lower marks than they received from the the big three.