Patience has burst: China started selling US debt

© REUTERS / Damir Sagolj/File PhotoКитайский police in BeijingPatience has burst: China started selling US debt© REUTERS / Damir Sagolj/File Photo

China reduced investments in us government debt at 7.7 billion dollars — to a minimum over the last six months. Despite the serious worsening of relations with Washington, Beijing is still the largest foreign holder of Treasury securities by more than a trillion dollars. Will China, to a massive dumping of treasuries and than it threatens the American economy — in the material RIA Novosti.

All sold

In the second quarter, investments in U.S. treasuries were reduced, many States affected by economic pressure from Washington. The largest seller of U.S. debt was Russia, getting rid of almost the entire portfolio of these securities. In April-may, the Central Bank reduced its investments in treasuries prior to a paltry 15 billion dollars (at the beginning of the year, the amount exceeded one hundred billion). Intergovernmental relations continue to deteriorate in September and October, the White house will impose new economic constraints. The Russian currency waiting for another round of instability.

Turkey, has the package at $ 32.6 billion in may, brought it to 28.8 billion. This course adhere to the Turks almost a year: in November 2017 Ankara had treasuries at 61,2 billion dollars. From us government bonds also removed were Mexico, India and Taiwan.

Thus, single-handedly undermine the U.S. economy, the size of which is about 20 trillion dollars a year, is China, with its three trillion will not succeed.

Another thing is that the aggressive policy of Washington is forcing the state to gradually be the dollar, going to payments in euros and national currencies. Rebellion against the U.S. currency may be stronger than expected by most economists, warns Gal Luft, Executive Director of the Institute for analysis of global security.

He recalled that the United States now waging an economic war against two dozen countries with a combined GDP of over 15 trillion dollars.

The course set by Russia and China, pulling in the «anti-dollar bloc» more and more participants. The effect of coordinated operations against the American currency on the part of all affected States are difficult to predict.