Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Blue Chip Gold Stocks HM, NEM, ASA, ABX, PDG -- Ignore unavailable to you. Want to Upgrade?

To: Wade who wrote (45627)	7/12/2013 2:06:12 PM
From: Jacob Snyder	Read Replies (2) \| Respond to of 48092

<How do you know Chinese are not selling?> If the Chinese were trying to sell any significant fraction of their massive U.S. Treasury holdings, the rate for the 30Y would be above 6%. The way out for the Chinese is: First, gradually shift their economy from export- to consumer-based. This gradually eliminates their trade surpluses, as Chinese consumers (instead of American consumers) buy what Chinese factories make. This step in in progress now. Second, they slowly (emphasis on slowly) sell their Treasuries. A little bit every month over a decade. With the money from selling Treasuries, they buy the hard assets they want, like farmland in Africa, copper mines in Chile.