Today on Hedgeye, CEO Keith McCullough aks the question: Is China selling off its holdings of US Treasuries?
The unspoken rule is that China will never, ever, EVER sell off its massive holdings of Treasuries. But Keith reminds us that you shouldn’t believe everything you read. Actions speak louder than words.Hedgeye:
China selling? Oh, no – they’d never do that, would they? I’ve said this enough times to be as annoying as Chris Dodd telling you he has it figured out this time, but please, for the sake of sobriety – please watch what the Chinese do versus what they say.
China was a net seller of US Treasuries for the 3rd consecutive month in January, selling another $5.8B net and taking its balance of America’s debt holdings down to $889 Billion.
That’s another $889 Billion reasons to ignore the reality that you can just “take me now but know the truth.” If we anger The Client (China) enough, rates are going a lot higher than your “exceptional and extended” Congressman’s sense of self is telling you.
Remember: if China has a massive UST sell-off, our economy will rival that of a cave man’s.
Be sure to visit the new Hedgeye Blog for more insight from Keith and his team.