Thread: China unloads $34-billion of U.S. government debt

Amid growing tensions between the two countries, Chinese officials express unease about the ability of the United States to finance its swelling debt

China unloads $34-billion of U.S. government debt

Barrie McKenna
Washington — From Wednesday's Globe and Mail Published on Tuesday, Feb. 16, 2010 7:48PM EST
Last updated on Wednesday, Feb. 17, 2010 7:02AM EST
Comments 66

China appears to be making good on a long-standing threat to dump U.S. Treasuries.

Foreign demand for U.S. government bonds and Treasury bills tumbled by the largest amount on record in December, according to monthly data from the U.S. Treasury Department. And China led the way, cutting its holdings by $34.2-billion (U.S.) and relinquishing its title as the world's largest holder of U.S. government debt to Japan.

In recent months, top Chinese officials have expressed growing unease about the ability of the United States to finance its swelling debt, without triggering a major devaluation of the dollar.

China has now cut its holdings of Treasuries by $45-billion over the past five months, or “a long enough period to hint strongly at a trend,â€

If China and Japan dumps their US Debt: in it's simplistic form ~ U B Screwed America

I hope China dumps them all. The last thing I want to be is in debt to an authoritarian, murderous, enslaving, communist regime.

W