"Since August ’11 to August of ’14, China has decreased its holdings of US Treasury debt by <-$9> Billion (according to the most recent TIC data)…while continuing to run record trade surpluses with the US. This means China will have (by year-end 2014) taken in $951 Billion in shiny, new, digital dollars and simultaneously sold or rolled off $9 Billion in US Treasury holdings…so China will have had to find a home for $960 Billion new dollars.
From ’00 to ’11, China had (on average) recycled 50% of its trade surplus dollar reserves into Treasury’s."
Following this logic China has diverted half a trillion dollars over three years away from treasury debt and into .....what? mmmmm makes you think
