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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (33884)	6/5/2005 12:45:09 AM
From: mthomas	Read Replies (3) \| Respond to of 110194

>with the creaking banking system and now oil reserves topping >the list of suggested alternate uses for the cash.” If those final 4 words were true, one thing. But they are not. That is not cash, that is USD Treasuries they want to dump. "an unfriendly act" is the way the USA views the exchanging of Treasuries for anything other than more Treasuries. I believe the Scandinavians (some nation in that area) just cut in half their Treasuries, about $32B I believe out of $64B by simply not rolling them over. Getting out of the USD as the Old Maid card is easier for some than for others. Buying commodities at this time priced in USD with those Treasuries is the ONLY way the Chinese can do a thing about limiting the haircut they will take upon revaluing the Yuan. The USA is demanding the Chinese take a loss on their holdings of US Treasuries by revaluing the Yuan. I feel this is part of the pressures brought upon the Chinese deal (which fell apart) for the Canadian nickle miner Norelsk(?), recently. The Chinese would certainly have wanted to trade US Treasuries for the price of the company, and the Canadians would likely not say it in public, but they do not want any American debt either. Regards, Martin Thomas