WSJ gets it wrong... again.
As detailed previously, a lot of China's purchases are through the United Kingdom, thus the "revisions". As a result, a better picture can be seen combining the two...China continued selling U.S. Treasurys for the fourth straight month in February, though it remained the largest foreign holder, the Treasury Department said Thursday.
Overall, foreigners were net buyers of long-term U.S. financial assets in February, according to the monthly Treasury International Capital report, known as TIC. China remained a net seller of Treasurys, with its holdings falling $11.5 billion to $877.5 billion, following net sales of $5.8 billion in January.
Heavy Treasury sales by China at the end of last year initially set off fears that the largest creditor nation to the U.S. might be shifting out of U.S. assets. But major upward revisions to the data in late February showed that China hadn't ceded its position as top Treasury holder to Japan, as initially thought.
For full details see my previous post China Sells Treasuries... or Did They?
Source: Treasury
Low rates (forever?), unemployment at +9%, medium oil (gas) prices, housing in the dumps but it must not have been a big contributer to the economy, orders going bezerk, shipping barges on fire, and only another 20% to go until S&P is at old highs. I guess nobody really knows anything about the economy. Party on.
ReplyDeletecrazy as it sounds, the economy may be re-leveraging up for yet another debt cycle
ReplyDeleteJake,
ReplyDeleteI mean, whatever. The endless cycle continues. No wonder nobody knows anything about what is happening, it's too upsetting. Plus American Idol is on.
Station Break until the next fiasco....singing off.