China will keep buying our debt. Why? Because they are the sh*tiest stock pickers I have ever seen...just look at their investments in Blackstone and other financials?
So China's stock losses are effectively the U.S.'s gain as T-Bills (with their paltry 3% yields) be will sufficient for the risk averse Chinese. Besides if China doesn't buy up US debt to finance our recovery then they will be cutting off their largest export market...that's not gonna happen. Xie xie China, we know "you just can't quit US."
This revelation effectively nullifies my bullish position on TBT
Oh yeah and "IF" China does decide to pull out of Treasuries and walkaway from the debt table....
Hat tip to The FLY...he's a wise man.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment