Posts by "putko mafani"

Cat, seen the recent data for Chinese holdings of US treas.? They are continuing selling US treas. Any comments from you? I told you: China is unwinding their long US treas. position.

There is little that can be said about the December TIC data, as all the same (troubling) trends continue. Total Chinese holdings declined by $4 billion, as a result of $9.4 billion in Short-Term debt declines, offset by Long-Term purchases. China continues to dump agency securities like there is no tomorrow, and December is the 6th month in a row in which China has seen its agency holdings decline, but that should come as no surprise to anyone: after all they made it somewhat clear they are on the verge of liquidating the bulk of their GSE holdings recently.

But wait? You say Fed is acting like a firewall for foreign shocks. Yes, correct. In a couple of years the Fed will be the sole holder of US debt :)

@sydneyjames

Today's data shows that inflation pressures in China persist:

0544 GMT [Dow Jones] China's stronger-than-expected trade data strengthen its economic growth prospects and indicate the country's inflation is picking up pace, ANZ economists Liu Ligang and Zhou Hao say in a note. The extraordinary increase in import growth shows China's strong demand for commodities, and an expected big rise in residential incomes will also drive the country's imports to continued growth this year, they say in a report. In addition, rises in the yuan's value will to some extent lower the cost of global commodities, the report says. China's January exports rose 37.7% on year, China customs data show, compared with December's 17.9% rise and economists' +22.4% forecast. January imports were +51%, compared with +25.6% in December and economists' +28.6% forecast. (rose.yu@dowjones.com)

@NickKristof Nicholas Kristof
Hosni Mubarak will never see Cairo again.

digi, who cares about the Zimbabwe dollar, when the similar story of the US dollar is unfolding in front of your eyes.

Hey Catnip, check this out as per Ashraf tweet:
alaidi Ashraf Laidi

RT @zerohedge: China SAFE Denies It Faces Half A Trillion In GSE Losseshttp://is.gd/z5dtVj #forex $$

So at the end of the day China will most probably start unwinding US treas. sooner as opposed to your expectations to hold them forever :)