Tags: Jim | Rogers | China | Treasuries

Rogers: China Will Keep Dumping U.S. Treasuries

Thursday, 25 Feb 2010 08:02 AM

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
China will continue to sell U.S. Treasuries in the future, says Jim Rogers, co-founder of the Quantum Fund.

China will unload more debt as the “euro scare” continues, he said.

The government reported that appetite for Treasuries declined by the largest amount in December as China reduced its allocation by $34.2 billion to $755.4 billion. Japan made a similar move and lowered its amount by $11.5 billion to $768.8 billion.

“I am surprised China has not dropped more,” Rogers told CNBC.

The United States should be concerned about this change in investments, he said.

“The U.S. should be worried about everyone lightening up – not just China,” Rogers said.

Lawrence Summers, director of the White House National Economic Council, said the paring back is not a concern, CNBC reported.

"The truth is that these numbers fluctuate and that there's a wide range of holders of Treasury debt. ... What's been very clear from the market responses over the last two years is that the United States is seen as a major source of quality and a place people run to when they're uncertain," he said.

Other analysts said the amount of U.S. government debt held by the Chinese is likely to be a larger amount since they also buy anonymously via banks in Switzerland, Britain and other countries, the Associated Press reported.

"We do not believe that the Chinese are dumping Treasuries. What they are doing is diversifying the channels through which they make these purchases so that it is much more difficult for the market to ascertain what they are doing,” said Arthur Kroeber, managing director of GaveKal Dragonomics, a Beijing research firm.

© 2014 Moneynews. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Texas License Plate Law Baffles

Thursday, 18 Dec 2014 09:37 AM

The Texas Transportation Code says the state may refuse to create a plate "if the design might be offensive to any membe . . .

Tax Reform Will Ignite a Beat Economy

Sunday, 14 Dec 2014 08:58 AM

Rep. Dave Camp, R-Mich., as chairman of the Ways and Means Committee, did his considerable best to deliver the indispens . . .

Obama's Big Govt Fuels the 1 Percent

Monday, 08 Dec 2014 07:38 AM

In New York, an incubator of progressivism, Kotkin reports, the "wealthiest 1 percent earn a third of the entire city's  . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved