SI
SI
discoversearch

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: The Barracudaâ„¢ who wrote (45641)7/12/2013 3:14:52 PM
From: Jacob Snyder  Respond to of 48092
 
So, you don't see any candidates for B either. (B being the hypothetical buyer of Treasuries when/if the Chinese dump theirs on the market.) And, it's not just the Chinese. Japan could also.

What happens in any market, when somebody dumps a lot of supply into it? The price goes down, until enough new buyers are enticed to soak up the added supply. For Treasuries, that means an interest rate spike. This process has happened numerous times, with other countries, when banks decide they no longer trust a country, and dump that nation's sovereign debt.