David, any information on China's Treasury holdings? Have they spent some of their largesse to prop up the stock market or finance the nascent social safety net?

David Fuller's view

Interesting question and Eoin added this chart of China’s US Treasury holdings to the Library today, which I believe is updated six times a year.  They soared from mid-2002 to mid-2011 before levelling out. We know that China has its own version of QE so my guess is that it is using some of that money to prop up the stock market. 

Incidentally, China will have significant total return gains from its investments in Treasuries and some people are saying that it will have to let the Renminbi devalue a little further against the strong US Dollar.  If so, it would make sense for China to take profits on Treasuries when the Renminbi is somewhat weaker.

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