Russia Dumps Most US Paper Ever As China Reduces Treasurys Holdings To January 2013 Levels

Tyler Durden's picture

Back in December, Socgen spread a rumor that Russia has begun selling its gold. Subsequent IMF data showed that not only was this not correct, Russia in fact added to its gold holdings. But there was one thing it was selling: some $22 billion in US Treasurys, a record 20% of its total holdings, bringing its US paper inventory to just $86 billion in December - the lowest since June 2008.

 

It wasn't just Russia: the country that has ever more frequently been said to be in the same camp as Russia - and against the US - namely China, also sold another $6 billion in Treasurys in the last month of 2014, which would have made its US treasury holdings equal with those of Japan, if only Tokyo hadn't also sold over $10 billion in the same month.

And while we know that Russia used at least some of the proceeds to buy gold, the bigger question is: just what is China buying with all these stealthy USD-denominated liquidations, and how much gold does the PBOC really have as of this moment.

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fascismlover's picture

If they are even a smidge smarter than I am, they would dump all holdings within 6 months.

johngaltfla's picture

One thing for sure; the Russians are winning the war on the ground and making the West look like a bunch of fools.

FreeShitter's picture

Too bad the avg american sheep could not point out russia on a world map.

Publicus's picture

Chinese is converting it's USD holdings to Ruble, which is backed by oil and gas.

 

Versus the Dollar which is backed by a gun to your head.

oudinot's picture

Actually a drone to your head.

Latina Lover's picture

The Achilles heel of the western bankster regime is the dollar hegemony backed by NATO.  Remove it and watch the entire MIC house of cards fall.   This will take time, but Russia and China 'get' it, and will continue to sell dollar holdings and deal direct. This is also why Putin is in the cross hairs of the USSA.

Pool Shark's picture

 

 

Meh.

All remaining US debt will be promptly purchased by the Federal Reserve; eventually they will own it all.

When you owe a debt in your own currency (Note: I didn't say "money") you can monetize  'till kingdon come.

So, what's the big deal?

[PS: I'm serious...]

 

Chuck Norris's picture

But first 401k holders will be forced to buy the treasury debt.  When 401k's run out THEN the fed will monetize til kingdom come

El Vaquero's picture

A few lawsuits could delay the inevetable with retirement accounts.  That could be enough.

Self-enslavement's picture

World Zionist (WZ) power is “counterfeit money” power to enrich themselves and power gained from immoral pernicious usury, a plague on the human race that causes massive debt-slavery and starvation worldwide for all others, plus the power to tax all others and also the powers to evade all criticism, laws and agreements.

jeff montanye's picture

central banks can buy stuff denominated in their own currency.

but they can't print gold or silver.

that is what powers the next leg up.

logicalman's picture

Buggers would just change the law.

max2205's picture

Great, Fucking Russia gets moar interest than me.....fucked up!

sun tzu's picture

That might cause a bit of a stock market crash, like 90% without the 401k's pumping billions in every 2 weeks

Againstthelie's picture

It's no big deal until a dollar crisis emerges.

A central bank that only has the debt of the own government on it's balance sheet (USrael has only 120 bn$ foreign reserves) has the following problem, when a currency crisis emerges:

It has no foreign FX to sell to collect the weakening national currency on the market. So it only can raise interest rates. But a currency crisis most often comes among a weakening economy. Raising rates kills the economy further, the government deficit rises, the currency crisis deepens.

 

That's the huge difference to - for example - the Swiss National Bank's money printing:

It printed it's currency to flood the market and to buy foreign FX, gold, equities with it. In a weakening phase of the Franc, it simply could sell these assets denominated in other currencies and buy Francs on the market.

The difference between printing money to pump up a bancrupt financial sector, or to finance bancrupt states (BoJ, ECB) and printing money to weaken the own strong currency.

Nobody understands that. Until a currency crisis emerges.

Againstthelie's picture

Just curious: what idiot has downvoted this first class educational information which can be found nowhere in the financial media?

Took Red Pill's picture

some troll. I've noticed a lot of that lately

JohninMK's picture

The 'system' does it. Just upvoted but got a simultaneous downvote. Happens fairly regularly!

seek's picture

Sockpuppets, either live or scripted. I've noticed a huge increase in sockpuppet activity here lately, so ZH must have gotten elevated enough on someone's threat list to motivate them to fork over cash for puppets.

They also seem to be keyword triggered, we've always had a few based off of keywords a certain middle eastern country created in the 1950s would care about, but I've noticed lately negative china-related keywords bring them out in droves, and the other day they went completely nuts when the Franklin scandal was brought up.

SuperVinci's picture

Yea, no shit!

 

Get with the program. We all up vote each other and only trolls down vote. How else are we to know we are right plus identify the trolls?

Aaron Hillel's picture

So, pardon a philistine`s question, if the US govt wishes to acquire, lets say, another carrier group for the incoming war and needs  a few hundred billions for it, it suffices to dial them and pump the money into MIC, then a year or so later, receive the items?

Does the reserve currency status authorise such manoeuvers?

 

 

AvoidingTaxation's picture

Troll and juncker bastards. Easy to do without a reply  commentary. Hei what is problema. Debate. Uk buddies?

The shit is hitting the fun right now.There is no coming back.

Action now!

Publicus's picture

It's not, hence World War 3 is coming. Both sides will print to finance the war.

Oracle 911's picture

The war is here, and the US$ is the easiest biggest slowest juiciest target. So, when the Sino-Russian alliance take out it out of picture the Western empire of evil will crumble like the WTC towers in that inside job.

Antifaschistische's picture

let's see..the FED steps in and BIDS UP the price of US Debt (i.e. flushing the interest rates into the toilet).   Wouldn't any rational holder of US Debt sell to the FED while they're intentionally paying higher than natural market rates?

manofthenorth's picture

Buy low and sell high......check.

Selling overpriced US Dollars and Buying under priced Gold....check.

WINNING !!!!!!

 

Lanka's picture

That has worked well in Argentina.  The stock market is at all time highs.

wareco's picture

Seriously?  Ask the Zimbabwens what the big deal is.

Lolitsa's picture

You'll be able to get your US currency at Costco nicely rolled in four-packs of nine rolls each. They'll be back by the dog food. Just mind the potential for butt rash after using for a week or so. Me? I'll stick with Cottonelle.

kchrisc's picture

+100

Yeah, China, being a manufacturing giant, is slowly trading off their holdings of TPs, dollars, for friends and hard assets. Russia, being mostly extractive (oil & gas), is quickly trying to get into hard assets. China is probably orchestrating the whole thing so as not to get the TPs too wet, too soon.

Sort of fun to watch, and heartbreaking as well in watching Zion's desperate rape and murder of the rest of the world in an attempt to keep their ponzi going that much longer. The false-flags have certainly been amusing.

The banksters need to repay us.

 

It is like the Zionist west stole the world only to find the east in possession of it.

Ima anal sphincter's picture

The false-flags have certainly been amusing.

I'll go with most of your statement, but there is absolutely nothing "amusing" about people dying.

Lolitsa's picture

By 'amusing,' I think the poster meant the pathetic lengths they will stoop to in order to sway the sheep. Those with their eyes open can cut through the tin veneer. And I mean tin.

kill switch's picture

 

The U.S. Has decapitated more than 400 +_ people with drones and we have the fucking hubris to have our controlled media tell us how savage the ISIS folks (obama) are. Saudi Arabia has also decapitated.

 

http://www.inquisitr.com/1458897/as-far-as-beheadings-go-saudi-arabia-appears-to-be-competing-with-the-isis-why-is-u-s-turning-a-blind-eye/

 

 

 

Don't forget,,,, never forget the NDAA...... Fucking truth is foreign to the U.S. Populace...

 

Latina Lover's picture

The war on gold is the war to support the Dollar,  fiat  currency crap backed by violence.

HelicopterCoPilot's picture

Which is more valuable to you; your hole-less head or oil & gas?..

People always forget (conveniently or accidentally) this fact, when they discuss USD 'intrinsic' value..

There is much intrinsic value in a hole-less head..

Took Red Pill's picture

Don't worry. The Belgians will buy whatever the Russians sell.

Thirst Mutilator's picture

Miserable Fat Belgian Bastards! Oh Wait!

Fukushima Fricassee's picture

They can stick that gun up thier other end.

petkovplamen's picture

to freeshitter: why would they even need to know where Russia is? Why burden their brains wth useless knowledge? they know what they need to know: all the names of the players in their fav teams

BanksterSlayer's picture

What is China buying? One word: America.

rsnoble's picture

I don't really care for 'not being able to point Russia out on a map' as a guage of importance.  Exactly what good would it do you if you did know?  Nada.  So we will seperate into two groups: 1. Those that are intelligent elsewhere asides from geography still get an A.  2.  Those that are equally stupid everywhere else get an F.

MachineMan's picture

Its located along the Potomac River and just North of Alexandria, right?

Nexus789's picture

These are probably the same 25% of the sheep that believe that the Sun rotates around the Earth.

Lolitsa's picture

But they sure as hell know EXACTLY where Bruno Mars is performing next. This world is doomed.

knukles's picture

If I were he/them/whatever, I'd be a seller, too.  I mean next thing is Our Guys with the White Hats'll say, "They're not on SWIFT anymore (after we threw them off) so there's no way we can pay them, even though we really and truly double dare unicorn shit want to."
Sur-fucking-prise Surprise

JohninMK's picture

Ooops that means they can't pay us either.

roadhazard's picture

You mean "the rebels". Putin ain't doin' nuttin' just ask him.

asophocles's picture

Is that why Russians intent on emigration prefer to move to America and Americans (Zero Hedgers excepted, of course) prefer to stay in America?

You mean winning like that?