China may hold about $1.2 Trillion in US debt, but just recently China has dropped 97 percent of it's holdings in US Treasury bills... what is on the horizon for the US?
It doesn't look good... however maybe up is down, and down is up!
"China holds about $1.2 trillion in U.S. government debt, according to the Treasury Department's latest figures. That's about 30 percent higher than the previous estimate.
This is part of those global imbalances we keep talking about. China exports more than it imports; the U.S. imports more than it exports. So U.S. dollars keep piling up in China."
"(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."
http://cnsnews.com/news/article/china-ha...To be honest I don't know much about all the facts and figures on this one, and most of it is way over my head... however owing as much as the US does to China, seems to have made the Red Giant a bit nervous! It seems that China is going elsewhere to invest. Who knows what has caused this change in direction... maybe it is still the whole US selling arms to Taiwan deal that I posted some time back?
Wikileaks Cables: Global Warnings Of China...
http://www.rantrave.com/Rant/Wikileaks-C...