This past week we saw the release of numbers that show which country holds the most US treasuries. Too some surprise it was Japan not China. The question to ask Is China dumping US debt or is Japan buying? According to a Bloomberg article China sold 34 billion dollars worth of treasuries in Dec 09 and has not purchased any in the last 8 months. It appears the China has lost its lust for US debt and may seek to invest elsewhere. Does this make sense if the US is their biggest exporter?
Some would say these two countries need each other to survive while other think China could begin selling its products to its own people. Other news items shows China putting massive amounts of money into gold and silver.
Here is a video from Chinese news station pitching silver bars.
My last post titled “Nightmare Before Christmas” may have been a bit premature. On Christmas Eve the US government decided to lift the 400 billion dollar cap it previously thought was enough to cover the Freddie and Fanny screw ups. Of course this was not really mentioned in the mainstream media and pretty much ignored since it was so close to the holidays. I find it funny and sad that a country that praises its Capitalist ways must continue to fork up tax payers money to bail out large corporations. Just like any parent knows, without rules and structure a kid will mis behave until they are forced to suffer some consequences. Yet Fannie and Freddie can continue to make bad decisions knowing the government will always be there to bail them out. In a real capitalist economy companies go bankrupt when bad decisions are made. This is how the system separates the good from the bad.
This is a great video blog that Peter Schiff posts randomly through out the week. This particular post talks about the Health Care Bill and the upcoming congressional hearings regarding the economic collapse.
