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Japan Set To Surpass China As America's Largest Creditor
When it comes to America's foreign creditors, only two names matter (except for Belgium whose Euroclear service continues to be used by an anonymous entity(s) to buy up US Treasurys): Japan and China. And it is in the Treasury buying and selling dynamics of these two entities that we can see how Japan's monetary policy has impacted its holdings of US paper, which just hit a new all time high of $1,242 billion, while on the other hand Beijing's official holdings of Treasurys have remained unchanged since the summer of 2011, and which in July declined yet another month to just $1,250 billion, the lowest since January 2013.
In fact, as the chart below shows, thanks to Abenomics, in the past two years Japan's holdings of US paper have soared by $150 billion, as the BOJ has forced pension funds, banks and citizens to chase higher yielding US paper, while Chinese holdings haven't budged by an inch.
At this rate, look for a historic inversion next month when the December TIC data is released and which, all else equal, will show that for the first time since the financial crisis, China will no longer be America's largest creditor, a spot that will be taken over by insolvent Japan.
Yes, the same Japan which as we showed before, is forced to monetize all of its own gross treasury issuance or else suffer a completely bond market collapse.
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Where's Barnaby? We need some good yO'momma egg jokes tonight
Ho Ri Fok... this chit gets more desperate by the moment
Damn!
I always thought that the current and future productive people of America were its largest creditor.
Oh what a web we weave, when we FIRST practice to deceive.
The only people buying U.S. debt are people who can't open their eyes all the
way so they can't see what worthless crap it is.
And they'll be the most stunned when TSHTF and their equity goes to zero.
China's WWII revenge coming soon
Americans wrongly believe that John Kerry-James Taylor thing in Paris was a hoax:
http://tinyurl.com/kneu4zp
Can we just call the bonds of so called sovereign debt "hot potatoes."
Those holding them in the end get burned.
The banksters need to repay us.
BOJ prints up worthless Yen to buy worthless US debt.
Pensioners in Japan (occupied by US since 1945) funding US government and war machine.
It's called the tribute and it's what you pay when you lose the war.
Exactly. Japan has been a US colony since 1945. What makes people think the BOJ actually has a choice as to whether they should purchase Uncle Scam's debt?
They don't call it Net International Investment Position (NIP) for nothing...
So Japan is prepared to sell?
Tomorrow if necessary?
I have a few doubts about that.
They are obviously a member of the Globally Orchestrated Organization of Kleptocracy
So it would take a united japanese/chinese selling alliance to crash the US bond market?
I would think that if either were to start dumping USTs the other would be forced to jump in too in order to get something, anything, of value before those paper promises become worthless.
That or the other would be forced to purchase ALL the paper in order to maintain the illusion of value. BTFD and all that.
As an aside, Japan is buying UST with worthless paper to prop up it's own worthless paper with worthless paper? I need a drink...
One insolvent nation to another insolvent nation. Two broke paper money artists and QE addicts. Hilarious.
It's a bankrupt threesome having a fiat circle-jerk.
Because the financial powerhouse that Japan is, they have all that extra money to dump into US treasuries.
Um, yeeeeaaahhh!
Well fuck me....I feel better already!
Dumb and Dumber...Weak and Weaker.
That just gives me a strong sense of security...NOT.
It is coming to an end SWIFTly.
Hope you all are prepared...
Is this some kind of joke?
Well, yes. It's a giant circle-jerk. Fraud, deception...lies, theft...you know, high finance.
I ask myself that question EVERY DAY lately.
NO SARC.
Japan is about spent. Queue EU QE and Swiss pegging a basket that includes USD.
Next!
TR, are you saying that the Swiss move this week was just a prepositioning move for having Europe take over as the King's guard?
Yes. Yes I am. The Swiss move was not out of deperation. They are getting ready to shift support of the petrodollar to a greater fool. TPTB have been telegraphing this move for months and months.
I picture it like a small group of winos passing the bottle around a barrel fire to keep warm and merry. Eventually the fire needs more fuel and the bottle runs empty.
I think the Swiss bailed on the Euro peg because it was costing them billions and they simply couldn't afford it. Plus, the Euro purchases helped keep the Euro value higher than it otherwise would have been. Which is NOT what Europe wants right now. IF the Swiss sell off some of those Euros, plus some of the other paper they are holding... Euro takes a small (controlled?) slide, and there's more A grade (Yeah, I threw up a little in my mouth typing that) paper for the ECB to pick up....
It doesn't really make sense that the Swiss would bail on a Euro peg in order to facilitate the Euro becoming the next petro dollar... Not only that, but TPTB wouldn't see the UK trying to walk away from the Eurozone if that was the case. Plus, and not least of which, Europe has too many American military bases within it's borders. I believe to prevent just that sort of thing from happening.
lmfao, the BOJ and Kampo/pension fund is going to lend ¥ to Mr. Yellen?
Whoza gonna buy a european bonds, eh?
- Italian Treasurer, Name Unknown
PRINT
Where's the FED's graph.
Is Japan just paying the bodyguard?
Bitchez, Who's the best James Bond?
I am
You were short the franc?
I traded the CHF-2 years ago. Define risk, Then understand the reward.
Lesson #1 define your risk profile
Ian Fleming's
Buying US paper with Japanese paper...whats up with that? Do we care? Its all a sham anyway. Why act like it will lead to something bad when it tells us that something bad has already happened?
Stay----glassy.Flat Old Wood
As long as prices keep collapsing and the Saudi's build that wall all is well.
Good lord, Z/H coment threads are looking like the London " Blythe fix"
Its a rigged casino dude.
We're just "part of the rigging" so to speak. Starboard, port, aft, bow...we're all just part of the SS Minnow here...
Three hour tour, my ass.
I think you used a B instead of a T in your headline on numbers. Milestones
We are talking Japan, so do not forget the "Q" also.
The currency crisis feedback loop this monstrosity will have when it unwinds would be utterly insane.
Of course, it'll never unwind, one day they'll just wave a magic wand an the account balances for both Japan and the US will be measured in SDRs or whatever*.
* "whatever" could mean the balanced sheets are charred and glowing.
ZURICH! GOLD! ROSLYN CAPITAL!
Its not even gold theater. I feel for the dopes buying swiss francs...sure, they finally had a good day in five years. Now what?
WWIII, balance sheets will 'sore' even higher but no one will care. When it's over, the winner will 'tax' the rest of the world to solvency... sorta.
Or, glowing embers...
Simply one boat anchor attaching itself to another boat anchor to have company as they sink together into the abyss.
Look no further for proof of Planet Ponzi
How can a Bankrupt country be a creditor to another country, only on Planet Ponzi
Theater of the absurd...
I wish they would all ask them one simple question, "To be or not to be...."
WRONG !!!
To QE or not to QE, that is the Question !!!
Whether 'tis nobler in the mind to suffer the slings and Abe's arrows of outrages fortune or to take arms of a sea of troubles and by opposing end them.
Thats pretty deep for a Friday Night SG. I strongly suggest you get on with your drink and drive such thoughts from your mind!!!
There can be only ONE!!!
- Bankers never sleep, so ZH should never sleep
Fuggit, I drink all the time, it keeps me straight, but I do sleep in and get headaches. lol
- Don't do as I do, go ahead and front run these TBTF
Now thats what I'm talking about, crazy talk brought on by too much drink !!! Well done Sir !!!
I drank a 22 oz oatmeal stout and am taking bong rips like a mother fucker!!!!!!
Hulk, if you're ever on chat let me know! I learned to farm!
- Lennon Hendrix
I miss those premium "draft" beers,
I don't really see Belgium buying LT Treasuries according to the data:
http://www.treasury.gov/ticdata/Publish/shl2002r.pdf
http://www.treasury.gov/ticdata/Publish/shla2013r.pdf
(http://www.treasury.gov/ticdata/Publish/mfh.txt)
http://www.bea.gov/newsreleases/international/intinv/iip_glance.htm
Last Data is November 2014 compared to April 2014(up or Down).
Belgium 2002 = $10.8 B, then 2013 = $163 B, Today $335 B(down)
Cayman Islands 2002 = $10.7 B, then 2013 = $66 B, Today ??
Canada 2002 = $8.4 B, then 2013 = $46.6 B, Today $64 B
China 2002 = $95 B, then 2013 = $1,272 B, Today $1250 B
Hong Kong 2002 = $37 B, then 2013 = $89 B, Today $165 B(up)
Ireland 2002 = $6 B, then 2013 = $91 B, Today $127 B(up)
Japan 2002 = $260 B, then 2013 = $1,023 B, Today $1241 B
Luxemburg 2002 = $20.2 B, then 2013 = $107 B, Today $167 B(very up)
Philippines 2002 = $3 B, then 2013 = $36 B, Today $40 B(up)
Poland 2002 = $7 B, then 2013 = $31 B, Today $27 B(down)
Russia 2002 = $3 B, then 2013 = $138 B, Today $108 B(down)
Switzerland 2002 = $28 B, then 2013 = $157 B, Today $183 B(up)
Taiwan 2002 = $0 B, then 2013 = $183 B, Today $170 B(down)
United Kingdom = $45.7 B, then 2013 = $130.6 B, Today $174 B(down)
But we don't know who is hiding data, sales, purchases...
Who cares.
the only sane comment here... +1
Japan Set To Surpass China As America's Largest Creditor?...
Time to get the best heroin that money can buy as your nutritional priority cause it's all going to be going downhill very rapidly for you in these United States when Japan takes on that new role while China dumps the remaining $1.3 trillion it has in $$$!
And when you're going down on that "buzz" keep reminding yourself that Janet Yellen will make good on shutting down the printing press because as we have been told the economy is coming back and it doesn't need help from the Fed after 6 years of ZIRP/QE!
Make every day New Year's Day at this point!!!
I don't believe China is suicidal... You think they'd tank their own economy to prove a point? You think they'd destroy the system that sustains them?
ZH has become a buncha fuckin monkeys. When did they start just letting anyone in here? Do they still make you solve the ridiculous math to get in here? And when you're right are you still wrong? Fuckin monkeys....
You're wrong. China dumping treasuries would be the same as what Switzerland just did, only on a larger scale. They wouldn't be destroying their economy. They would just be cutting their losses and admitting they made a mistake.
"."
Yeap, that's where all the yen are going, to buy treasuries.
I didn't post this either;;;;;;;;;;;;
You, Sir, got, like, an aroura that, like, I want to get to know.
So, like, whaere did all the Yen come from?
[Initialy I typoed "whaere", but I hope everyone of the willing coalition of willing to support my brand-spanking-new-Jack-In-The-Box*i cant do a copyright symbol thingy it took me twelve(12) hours to google it all with obviously*absolutely* no success[and i went to pHEONIX COLLEGE......................
OH!!! So! LIKE i was thinkin'' bootx
Wait! Shit.. a well
its not you is me
Thank god i didn't post this
"So, aside from the fact that four out of the six mediocre/pathetically ineffectual ads have T and/or A, why is it note-wordy[sick] that Jap and Chi have changed position as the U.S.A.'s #1 [enter not-terribly-BELIEvLABLE-OR-EVEN-MODESTLY-worthy-of-one's-ridiculously-short-durationally-spanned-attention-economic-Agency-Du-Jour(but not French, I think) term, tat we should all really try to get behind with postive superwaves of patriotsms!].....i fergot d'other."
Ima print more monopoly yen and buy your monopoly FRNs, monkey!
Second most racist people on the planet.
Okay.
Look
Ah the Tiffen Dilemma. Somehow during the Nixon reign, at a Bretton Woods congregation-somebody decided that whoever holds the world's reserve currency has to be in deficit to the world so that there was enough reserve currency available throughout the world.
So China has expressed how they want to shun the US dollar as the reserve.
"
The information we are NOT getting is who is buying Chinese government bonds. http://www.cnbc.com/id/102197850
I will laugh if Japan steps up to the plate. Pass the yakisoba please!
Im glad i managed to edit my self finallyy..
There's plenty of money to be Made in the currency markets.
My Broker filled my orders and provided liquididy. )sp)
Oanda , was fantastic !
I also have ECB exposure. Reuters and IB were fantastic.
This tells an interesting story, doesn't it?
What has China been doing with its $45B/month trade surplus if it is not putting it into Treasuries?
Buying gold...
I believe so. When they get the Eurasian finance system up and running, and they feel it is solid enough and resilient enough, I would expect they will accelerate their dumping of US treasurys, at a rate they can get away with that will be disruptive for the US but not disruptive for them and the new participants of the system. Much of it will be aimed at continuing to buy gold and perhaps oil, as China sees it as a bargain. They just need a place to put it all. Russia is right on, if not slightly ahead of schedule, to getting the alternative to the SWIFT system is place, sidestepping the use of US dollars. In the meantime, Congress argues over how many more billions to spend and finance.
http://sputniknews.com/middleeast/20150117/1017015192.html
Somehow this situation reminds me of heroin addict bums forcing each other to give head next to the cornershop.
China is probably increasing its holdings of USTs but doing it offshore through Euroclear and Clearstream to avoid the risk of US freezes, asset seizures and other hostile financial sanctions. Russia, China, Iran and other countries and financial institutions which might someday be victimised by US sanctions should hold ALL their assets off-shore if they are sensible.
To avoid direct conflict China is proably letting assets held in the US run to maturity while buying any new assets off-shore, hence the gradual slide in US holdings attributed to China.
Nice to see you posting again, LB. I check your blog on occasion, and would like very much to read some of your thoughts on, and insights into the final stages of this disastrous economic "experiment".
Mindboggling how one bk nation can bail out another bk nation. Anythings possible I guess when you make the rules.
"These are not the droids you are looking for" :)
Question: if one central bank prints 1 trillion dollars worth of its currency and buys 1 trillion dollars of US securities, is that a) coordinated intervention, b) a symptom of "currency wars" c) recycling trade surplues because of lack of domestic capital market instruments or d) yet another example of the uselessness of any and all countries central banks trying to monetize debt paying interest with bank notes paying zero?
answers on a postcard please to the BIS here; https://www.bis.org/publ/qtrpdf/r_qt1412e.htm
just saying
a), b) and d) but not c) as there is no trade surplus. http://youtu.be/p5Ac7ap_MAY
hmm...watched it all the way through..an hour or so of my life I won't get back.
Professor Werner is not much different from the central bank cabal he attacks.
This has not challenged my personal belief that credit creation is not something central banks should be remotely involved with in that it should only come from economic rents generated by investment in productive, (more or less) unregulated companies and individuals and certainly not by centrally planned organizations, whether these are governments or central banks.
In the same way that you cannot change the economic rent of an enterprise by adjusting it's balance sheet, or defeat the law of diminishing returns and innovation replacement of any industrial sector, you cannot create growth by printing credit where there is no demand.
Demand for credit is only and can only be reduced by the interference of idiots who think they know better what you or I should and could do.
A free market economy is about the allocation of accumulated economic rent to areas where it can be employed; central banks and governments cannot create economic rent, only dissipate it to their special interest groups of buddies or to vested interests that sponsor corruption.
If central banks were abolished and governments got rid of subsidies to special interests, who actually would lose out other than those who have been corrupted by the failed dogma of those who espouse QE and government intervention? Certainy not the 80% of people who just want the opportunity to work hard for fair reward without suffering falls in living standards from odious debt and taxes or the failed experiment that QE can only and will only ever be.
... >>> "Japan Set To Surpass China As America's Largest Creditor" ...
... and China reminds Japan that it has not forgotten the Nanking massacre (among other Nippon atrocities against China) ...
... >>>"China slams Japan for denying “past aggression” >>> http://thebricspost.com/china-slams-japan-for-denying-past-aggression/ ...