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America, Meet Your Brand New Largest Foreign Creditor
Exactly one month ago we wrote that "Japan Ties China As America's Largest Creditor" when, according to Treasury International Capital in the month of January, China sold just over $5 billion in Treasurys while Japan bought $8 billion in US paper. Fast forward to today when we are pleased to announce that, as expected, the trend has continued and for the first time since the great financial crisis, Japan is once again America's largest foreign creditor with total holdings of $1224.4 billion, surpassing China, with $1223.7 billion, for the first time since just around the time Lehman filed for bankruptcy.
Curiously, how the two countries flipped the top position is not what one would expect, because neither actually added to their Treasury holdings, instead Japan sold $14.2 billion while China sold $15.4 billion. In fact, this was the biggest one month sale by China since December 2013 and Japan's largest since June of 2013.
However, how they got there is irrelevant, as now Japan can boast that not only is it monetizing over 100% of its net domestic treasury issuance, but it is also the largest foreign creditor of the United States.
Indicatively, even the two largest creditors combined hold less Treasurys than the Federal Reserve which in the week ended April 8, held a total of $2.46 trillion in US debt.
And should US 10 year paper continue to yield such a "massive" spread over comparable Japanese paper, one can be confident that Japan's buying of America's debt will only continue.
The bigger question is now that China is clearly slowly but surely dumping its US Treasury holdings, just what is the government buying. The government, that is, not the population: those we already know are engaged in the biggest scramble for Chinese stocks in nearly a decade.
Source: TIC
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genius print yen to buy worthless dollars...genius!
Is it me, or both China and Japan are in a "disinvesting" mode since the begining of the year ?
Japan in particular might be needing some of that cash fairly soon.......
I am also a large creditor to the usa and to all of you zerohedge yanks contributing here: I am not investing in commentary, get back to work.
Kindly GFYS ! How do you like your "investment" now ?...
How do you like your "investment" now ?...
I'm not expecting it to reach maturity anytime soon.
And it's outta here!!!
We'll write you a check right now.....if you want us to!
You think dimon is just going to hand you the US checkbook? silly peon
buy worthless USD but also buy military protection from the great unwashed in China and Korea....
And here I thought these Japs were supposed to be smart.
how many decades did it take them to recover from their last mania? Did they recover?
I think the bath got them back in line. The ship with the funny equip showed up in tokyo harbor, sort of an -in your face- want another?
I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.globe-report.com
And they purchased them with what?
It would not at all surprise me if they bought US debt with bonds proceeds, priced in yen, and purchased by the U.S.
A debt circle jerk.
Exactly. Cayman Islands, Belgium, Japan....its all the same game.
FED QE continues unabated despite the sheep believing otherwise.
The QE continues, the Japs are monetizing the U.S debt instead of the Fed. But of course they are all interconnected
"You always leave me holdin the bag
Don't you know its gettin pretty heavy to drag
You think its funny but it ain't no gag,
How come you always leave me holdin the bag?"
Moe Bandy and Joe Stampley
so that is what Joe and Moe look like...sweet!
How in the hell is the Yen at 120:1 and not 2000:1?
Patience, mein Dahlink;)
Why the fuck is it not 00:00?
That's really the case - the true value of digits on computer hard drives.
So the BOJ, now holding the QE baton, is buying the US debt. This is why it doesn't matter so much which CB is doing the QE, as long as someone is doing it.
When the QE ends, so does the ponzi scheme.
a circle jerk can only go on so long
I remember clearly Japan threatening to quit buying Treasuries back in 95 and then presto-chango the Kobe quake hit. Then we had some rumors of Japan threatening to do the same and again, presto-chango, Fukushima.
"If it happens it was meant to happen "
- Henry Lucifer Kissinger, ZWO Mac Daddy
I doubt Lucifer would want to be mentioned in the same breath as Kissinger.
I dunno......Kissinger is a pretty big deal.
It goes Soros......then Kissinger.
Japan bought a lot of high-interest bonds way back when. Rolling over the interest into new issues probably accounts for the whole $8 B and, again, that's a fraction of 1 percent of the total holding.
If we're going down as the result of Chinese redemptions of a net $5 B a year
Or Japanese purchases of a net $8 B a year
I need to know how long it's going to take at that rate
Which one, the buying or the selling, is going to do the job
And why these two statistical artifacts do not essentially cancel each other out.
I'm not saying that QE Anyhere is a good idea but merely opining as to whether this is evidence of same. Regardless, I picked up my chips from all financial tables long ago. I may not be a winner today but I won't be a loser tomorrow, whenever tomorrow does finally come.
When Japan falls into China's hands, will Zion continue to honor those bonds?
The banksters need to repay us.
The biggest debtor is the other biggest debtor's biggest bag holder.
weren't these the guys that bought real estate(theirs and ours) at the peak and then it DESTROYED THEM.
Funny, I thought it was "Belgium."
This is like the end of a monopoly game, where one player owns all the properties and all the money, and the bank keeps writing amounts on little scraps of paper and 'loaning' it to the rest of the players, just to keep the game going. How much longer are we going to play the game? Its not fun anymore.
it fun for some...just not us. Hillary thinks it is fun, Obama, Buffet, Soros....etc
China has been busily turning Federal Reserve paper and US Treasuries into hard assets. Japan just had their national pension plan buy what China dropped. The largest creditor bar none of the US Government and by proxy the American people is the private for profit corporation known as the Federal Reserve Bank.... which has killed its host, as in a parasite killing its host. Every cent the American people pay in income tax goes to the payment of interest charges on the debt before a cent is spent on any program the US Government operates.
ECB buys Japan's debt, Japan buys US debt, US buys ECB debt
One huge circle-jerk.
No stopping this until the non-players no longer accept the dollar, Yen and Euro.
they're designated "non-players" for a reason
Strange bedfellows indeed. This is all counterproductive stuff for the USA, Japan, and China, not to mention the rest of the World. They should have let the cards fall where they may back in 2008 and this sort of pandering to a failed unworkable system is not going to engender good will or much expectation that anything will change before the whole unworkable system blows up once and for all again. The signal CB is sending is that they have no alternatives and are stymied with no options. The Captain of the Titanic Oligarch has ordered the crew to proceed full steam ahead in an ice field, and the drunkards in the crows-nest are passed out drunk on the souls of the poor. This will get creative real quick methinks.
"Domo Arigato Mr. Roboto!"
+1. Great Styx classic from 1983.
https://www.youtube.com/watch?v=3cShYbLkhBc
The American clown show compliments of the Federal Reserve!
there is no question of course, the government is buying gold as much as possible. However, many Chinese citizens are also buying gold (and silver) as well, because their government makes a lot of advertisements for them to do so. What a kind government they have, dont they? So many of them will still have much more of a hedge than the USA citizens, who buy ONLY shares and nothing else.
Japan iz our bitch ! Ma whale killers homies .
The Japanese got Fukashima'd. Just like the seismic events under Virginia and Colorado, the Fukashima event was too shallow to be an earthquake and the seismic pattern was much more like an nuclear bomb than an earthquake.
Given the evidential circumstances and the penchant for the powers that be to murder people and corrupt them into abject slavery, I would do whatever it takes to save my people (even to sacrifice myself and my soul) to prevent our further mutual destruction.
Japan is a tool because it has been threatened with extinction ... or so is my opinion based on the evidence. They have done what they need to survive, nothing more and they should not be criticized for such.
Colorado is a pretty big place all by itself. Haven't heard of any weird seismic events around here but maybe somewhere else.
Still, it is a real reach to imply that some sort of Fukushima-style event took place in a state with no reactors.
Japan = US Colony, Abe = US neocon puppet. His mission = destory Japanese economy to save USD and US financial system.
Concur.
All in the names of:
I've never seen a JPN PM who touted the "importance" of the USA-JPN Defense Partnership as the Blueprint for JPN's Foreign Policy Baseline since the "Heavily Noted Days" of the Cold War. It's as if Mr. Abe is the willing Submissive to the USA's Dominant in a BDSM Relationship.
JPN needs to offload all those Bonds and Notes; and just hold an lower amout of T-Bills that can be liquidated a bit faster when the PetroDollar and Econ Numbers start tracing the "Even Horizon" exponential curves leading to TSHTF Territory.
Better yet, start buying CNY with USD Reserves OnHand - The CHY won't crash as hard; and JPN/CHN trade volume is larger than their trade with Team_USA. JPN will deal with CNY more and more anyway. Let CHN and GBR hold up the USD - ROTFL!!!
So $5 B out of $1.3 T is an utterly insignificant rounding error and/or statistical noise. Say 3-4 tenths of 1 percent and that's over the course of an entire YEAR.
You guys are really getting played for major league consumers by people who are pushing your confirmation bias buttons just to see you jump in your seats.
I think their politicians are being bribed or blackmailed to trash the Yen and support the dollar.