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Russia dumps half of its US Treasury bonds


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#1 Nemesis

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Posted 16 June 2018 - 09:42 AM

Russia dumps half of its US Treasury bonds

 

 

 

Published time: 16 Jun, 2018 03:35
 
 
 
5b24852fdda4c885318b45d8.jpg
US Treasury Department in Washington DC © Alexey Agarishev / Sputnik

 

 

Russia has held a major selloff of US Treasury bonds, dumping some $47bn-worth of papers and momentarily dropping six places on a list of major foreign holders of US securities, recently released statistics for April have shown.
 

In just one month, Russia proceeded to sell $47.4 billion out of the $96.1 billion the country had in US treasury bonds in March. The latest statistics released by the US Treasury Department on Friday showed that, in April, Russia had only $48.7bn in American assets, occupying 22nd place on the list of “major foreign holders of Treasury securities.” 

 

China, which holds the most US Treasury bonds, also sold off some seven billion-worth of its American assets, from March to April, and now has $1.18 trillion invested in securities. Japan, which is positioned second on the list, in the same timeframe sold off some $12 billion, leaving just over a trillion dollars in US coffers. Ireland, which had $300.4 billion in April also managed to ditch over $17 billion in US assets.

 

A treasury bond is a fixed-interest government debt security with a maturity of more than 10 years. Treasury bonds make interest payments two times a year.

 

The mass selloff of US bonds by Russian follows numerous rounds of sanctions imposed by Washington against Moscow. The punitive measures targeted some of the most important sectors of the Russian economy, by limiting American financing available to Russian banks and business sectors across all major sectors.

 

 

https://www.rt.com/b...-us-treasuries/


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#2 Tatarewicz

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Posted 16 June 2018 - 11:30 AM

Sell off could be a mistake. If Trump puts US on a sound business footing by dumping Israel, bringing troops home to rebuild America and what it destroyed abroad in enhancing Israel's security US paper would be a great investment.


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#3 grog

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Posted 16 June 2018 - 02:22 PM

Sell off could be a mistake. If Trump puts US on a sound business footing by dumping Israel, bringing troops home to rebuild America and what it destroyed abroad in enhancing Israel's security US paper would be a great investment.

 

That's not going to happen.
 
US debt is going for broke.

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#4 grog

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Posted 16 June 2018 - 02:27 PM

Sell off could be a mistake. If Trump puts US on a sound business footing by dumping Israel, bringing troops home to rebuild America and what it destroyed abroad in enhancing Israel's security US paper would be a great investment.

 

https://engforum.pra...r-to-be-repaid/


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#5 grog

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Posted 16 June 2018 - 02:30 PM

Sell off could be a mistake. If Trump puts US on a sound business footing by dumping Israel, bringing troops home to rebuild America and what it destroyed abroad in enhancing Israel's security US paper would be a great investment.

 


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#6 grog

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Posted 16 June 2018 - 02:38 PM

Sell off could be a mistake. If Trump puts US on a sound business footing by dumping Israel, bringing troops home to rebuild America and what it destroyed abroad in enhancing Israel's security US paper would be a great investment.

 

US-National-Debt-and-GDP.jpg


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#7 grog

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Posted 16 June 2018 - 03:29 PM

allowance-spending-debt-598x570.jpg


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#8 grog

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Posted 16 June 2018 - 03:30 PM

national-debt-uncle-sam-begging.JPG?toke


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#9 grog

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Posted 16 June 2018 - 03:37 PM

Reign in Military Spending
 
 
 
 
One of the most common facts trotted out in the debt reduction conversation is that America spends more on its military than the next 10 countries combined, most of whom are allies. Much of this is due to the military's role as an employer, but also because of America's self-imposed role as a sort of world police force. Waving a flag of democracy, the US looks after the civil rights of global citizens-especially when financial opportunities also align with its democratic values.
 
Reigning in military spending and focusing on improving from within, and not from without, would lift an enormous pressure from the national budget. However, like student debt and the cost of higher education, this is a hot-button topic that few politicians like to address, especially when facing an election.

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#10 Atossa

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Posted 16 June 2018 - 05:54 PM



Is this only a political statement...
or does Putin think a continued rise in US interest rates will tank US bonds ??

.
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#11 wirehaired

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Posted 16 June 2018 - 06:18 PM

Sell off could be a mistake. If Trump puts US on a sound business footing by dumping Israel, bringing troops home to rebuild America and what it destroyed abroad in enhancing Israel's security US paper would be a great investment.

That's a big IF.
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#12 Radio1

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Posted 16 June 2018 - 11:43 PM

http://ticdata.treas...sh/mfhhis01.txt

 

There was a large decrease in 2014 as well, interestingly. Then just a lot of minor fluctuation up and down until the April sell-off. They similarly decreased holdings in 2013, but more gradually. Lots of ups and downs before then, and then it gets really interesting in 2008, where they went from 35.2 in January to 116.4 in December of that year. Intermediate amounts reached into the 170s at peak.


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#13 Hellboy

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Posted 16 June 2018 - 11:47 PM

....reached into the 170s at peak.

 

How much did you weigh at your peak? 300?


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#14 Zharkov

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Posted 17 June 2018 - 01:50 PM

As the Federal Reserve Board had already announced interest rate increases, that rise would drop the price of bonds, and Putin would have to consider that his losses in price drop could far exceed his gains in interest.

Another factor would be sanctions. Dumping US gov't securities is one of the worst things, if not the worst, that Russia could do - other than war.   It really puts pressure on interest rates in the US, and it is surprising that Russia had not completely divested itself of US government paper.   That divestment would have been my choice for the simple reason that when you start losing money, you should get out of the market.   Bond prices are always inverse to interest rates, so a price drop would be certain, which makes losses certain.

Putin isn't running a charitable foundation for America, he's trying to protect Russian wealth, the same job Trump has, and the job Obama did so poorly.

There usually are many factors in any decision but sanctions and interest rates are the two big ones.

 

Even if you assume the US economy will boom, that alone drives the cost of government higher as prices also rise during a good economy, which means more government borrlowing at higher and higher interest rates.   So the time to get out of bonds is when that trend begins to happen.


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#15 Zharkov

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Posted 17 June 2018 - 01:54 PM

Is this only a political statement...
or does Putin think a continued rise in US interest rates will tank US bonds ??

.

 

You are precisely right.   As US debt is incredibly high and rising, the risk becomes much greater of an eventual collapse in government bond prices.   There are better investments in Russia today.


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#16 Ivan88

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Posted 17 June 2018 - 02:15 PM

A major cause for all the wars & debt & oppression etc. is Futurism.

Most Americans believe in some imminent, yet never coming, Second Coming of Jesus who is going to solve all the immense problems they have created

So they don't do anything effective TODAY, in the HERE & NOW except sanction ever more problems.


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#17 grog

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Posted 17 June 2018 - 02:52 PM

 

You are precisely right.   As US debt is incredibly high and rising, the risk becomes much greater of an eventual collapse in government bond prices.   There are better investments in Russia today.

 

"Even if you assume the US economy will boom"
 
US economy will be going down, not up.

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#18 grog

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Posted 17 June 2018 - 03:05 PM

A major cause for all the wars & debt & oppression etc. is Futurism.

Most Americans believe in some imminent, yet never coming, Second Coming of Jesus who is going to solve all the immense problems they have created

So they don't do anything effective TODAY, in the HERE & NOW except sanction ever more problems.

 

 
The American mind does not understand the meaning of LIMITS.
 
This leads to disastrous spending.

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#19 Ivan88

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Posted 17 June 2018 - 04:46 PM

The American mind does not understand the meaning of LIMITS.

 
This leads to disastrous spending.

A good example of this is ever more spending on war.  

And yet, people support it all as if it were their salvation.

And these wars waste the immense wealth bestowed upon America and thus limit the potential America had for making Earth a Heavenly place instead of the many hells we created by our insistence on the violence of war to solve problems, all of which could have been solved with out war.  But we prefer to create more and more problems with our mindless worship of lies and war.


Edited by Ivan88, 17 June 2018 - 04:46 PM.

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#20 Kingranch

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Posted 17 June 2018 - 05:07 PM

Russian-Mongol-Horde mutants dumping stock? .....who gives a shit?


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