A Chinese newspaper with ties to Beijing suggests China is studying whether to sell down its holdings of U.S. Treasury bonds.Market analysts think China is unlikely to make a move that would harm its own cash reserves, though they don't dismiss the threat entirelyDumping Treasuries would likely raise borrowing costs for U.S. consumers and businesses, but it would also hurt the value of China's own Treasury assets, which top $1 trillion. A deepening trade war between the U.S. and China is reviving questions about what other steps Beijing could take beyond hiking tariffs on American agricultural, electronic and other goods. One option, according to a Chinese newspaper with close ties to the Chinese government: Dump U.S. Treasuries. Hu Xijin, editor-in-chief of the state-affiliated Global Times, purportedly said in a tweet Monday that Chinese scholars are discussing how such a measure could be implemented without harming the Chinese economy. In theory, that would push Treasury … [Read more...] about Will China pull the trigger and dump U.S. Treasuries?
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Asian shares edged up on Tuesday as investors hoped a new round of U.S.-China trade talks would help to resolve a dispute that's dented global growth and some corporate earnings. Improving market sentiment was news that U.S. lawmakers reached a tentative deal on border security funding that would avert another partial government shutdown due to start on Saturday. The S&P 500 e-mini futures were up more than 0.5 percent.. MSCI's broadest index of Asia-Pacific shares outside Japan added 0.3 percent. The Shanghai Composite Index rose 0.6 percent, South Korea's KOSPI climbed 0.4 percent and Australian shares were up 0.4 percent. Japan's Nikkei advanced 2 percent after a market holiday on Monday, lifted by a weaker yen. U.S. and Chinese officials expressed hopes the new round of talks, which began in Beijing on Monday, would bring them closer to easing their months-long trade war. Beijing and Washington are trying to hammer out a deal before a March 1 deadline, without which U.S. … [Read more...] about Asian stocks edge up, U.S. futures rise on hope for no U.S. government shutdown
According to the Israeli media, during his meeting with Secretary of State Mike Pompeo in Brussels last Monday, Israeli Prime Minister Benjamin Netanyahu asked for the U.S. to impose an economic embargo on Lebanon. Pompeo reportedly rejected Netanyahu’s request.The meeting between the two men took place on the eve of Israel’s initiation of Operation Northern Shield last Tuesday. The operation is a military effort geared towards sealing Hezbollah’s offensive subterranean attack tunnels. It follows Israel’s stunning revelation that it had discovered the locations of Hezbollah’s attack tunnels, perhaps Hezbollah’s most secret undertaking. According to Netanyahu, Hezbollah launched its offensive tunnel project in 2014. The existence of the tunnel program was known to almost no one in the organization. Hezbollah’s tunnels traverse the border between Lebanon and Israel. Hezbollah reportedly intended to have the tunnels serve as a means to invade … [Read more...] about Caroline Glick: The U.S. Government Still Thinks Lebanon and Hezbollah Are Different
By Richard LeongNEW YORK (Reuters) - Some overseas investors appear to be taking a pass on U.S. debt securities just as the administration of President Donald Trump embarks on a record sale of Treasury bills, notes and bonds to pay for its big tax cuts and spending increases.gi Top foreign holders of Treasuries like China and Japan have shrunk their portfolios of U.S. government bonds this year, and a recent barometer of participation in Treasury auctions suggests overseas buyers have not been showing up in force, according to Treasury Department data.Some auctions since late October had the weakest foreign participation rates in nearly a decade, a Reuters analysis of U.S. Treasury sales shows. At the same time, auction sizes are rising fast, with bond issuance this quarter projected to set a record of $83 billion after deducting maturing debt. "We do worry about where demand for Treasuries is going to come from, given the ongoing significant increase in supply," said Torsten Slok, … [Read more...] about Foreign buyers find U.S. Treasuries less appealing
Most of us have been more or less raised on a fairy tale about the role of our nation in the world. I don’t claim to have any special knowledge about the dark side of U.S. history, usually emphasized by those who are sometimes called revisionists. Everyone knows that our land was taken, by force and much shedding of blood, from those whom we now refer to as Native Americans. Everyone knows that we were among the last bastions of human slavery. Up to the present moment, we look bad, in comparison to other wealthy nations, in the help we provide to the poor among us. Etc. These are not secrets, but seem to coexist, widely and permanently, with the oversimplification that the United States is the leader of the world’s good guys, and is, in each period, pitted against some version of the world’s bad guys in the never-ending struggle to defend and expand the blessings of freedom and democracy. By calling it a fairy tale, I don’t mean that there’s no truth to … [Read more...] about U.S.-Saudi bond has been awkward from the beginning; WaPo offers an update