Trump proposes $100 billion more in tariffs on China, cites IP

[ExpatOilWorker]

25 minutes ago, bristolboy said:

All other things being equal, shouldn't there be an inverse correlation between increased purchases of treasuries and dollar weakness?

Usually increased public debt will over time weaken the currency, but it is a very slow moving correlation. With more treasure bonds being issued, bought by China or anybody else, it should over time weaken the US dollar.

That said, the past decade of QE from UK, Euro zone, Japan to China throw the basic economic models a bit out of wack.

[ExpatOilWorker]

38 minutes ago, lannarebirth said:

 

China's GDP growth rate holds steady at 6.8%. And if you believe that I've got some bonds to sell you well under face value.

I guess you are with tongue in cheek kind of saying that the Chinese 6.8% GDP number is overstated. You could very well be right. Some analyst will come along and correlate it with electricity generation or rail transportation.

 

Murky things are going on in China, that is for sure and they could be hitting for a real-estate correction:

 

https://www.bloomberg.com/news/articles/2018-04-16/china-may-be-headed-for-rare-property-defaults-neuberger-says

 

HK is throwing nearly $2 billion at their currency peg. Thailand tried that 20 years ago, didn't work.

Remember HK, China and Canada was singled out in the lates BIS report.

[bristolboy]

22 minutes ago, ExpatOilWorker said:

Usually increased public debt will over time weaken the currency, but it is a very slow moving correlation. With more treasure bonds being issued, bought by China or anybody else, it should over time weaken the US dollar.

That said, the past decade of QE from UK, Euro zone, Japan to China throw the basic economic models a bit out of wack.

Maybe over time, but given the case of Japan, that's debatable. At any rate, increased demand for anything, including bonds, increases their value. Which in the case of bonds means that it lowers he rate of interest they pay out.