"Japan and China Dump US Treasuries Before Trump’s Victory"

When these countries 'dump' US treasuries, they don't redeem them, they just sell them to other investors. So zero effect on the US treasury. Now it is a problem because it means that since they are selling rather than buying, that means there will be less buys when the US Fed tries to sell more bonds and so interest rates may edge up.

But Japan and China aren't as important as they used to be. They used to hold and buy 25% of US debt between them. But that has now fallen to less than 8% BEFORE the latest sell-offs. So what they do is less and less important to the US debt position.

But you need to ask yourself why they are selling. You seem to imply its because they are getting out before things turn bad in the US. But the fact is they are selling in order to defend their own failing currencies. China in particular is having a really bad time economically and the exchangeable Yuan is in free-fall. Its problems are even affecting the Aussie dollar because we rely so much on China.

So the sell-off by these two isn't a sign of problems in the US but a sign of problems in Japan and vastly bigger problems in China - although I expect that you'll continue to barrack for them.

Just one other point on your link from Sean Foo, If you look further into his YouTube page and his other ventures you see that he is heavily involved in promoting and selling gold and silver and other inflation hedges. So he is pushing the bad-times-ahead schtick in order to sell his products. If you go back and look at his posts from two or three years ago he was selling the same story to the same people for the same purpose. And he was no more right then than he is now. We see it all over the internet as people sell tales of doom and then try to sell the remedy. Buyer beware.

Thanks for the information mhaze, on Sean Foo's, gold interests.
Even though Japan may be selling US bonds, I think Japan's fundamentals are relatively solid, and they will come to a soft landing, as you implied. It's good that we have allies in the East. We might need to work on their rule of law fundamentals too, for when the bad times come. They seem to have a mix of Asian and Western governing styles from the Machiavellian perspective embodied in Tokugawa and more aristocratic histories.

More broadly Marxist's are investing in instability.

Hi mhaze,
"So the sell-off by these two isn't a sign of problems in the US but a sign of problems in Japan and vastly bigger problems in China - although I expect that you'll continue to barrack for them."

Ok thanks for the info, and I accept what you're saying.
But this does not change the U.S. debt position, and their reduced ability to find buyers for new bonds, is that correct?

America’s Bonds Are Getting Harder to Sell - April 2024
http://www.wsj.com/finance/americas-bonds-are-getting-harder-to-sell-c3fde4de
'Record issuance raises worries that debt sales will exacerbate volatility'

>>A series of weak auctions for U.S. Treasurys are stoking investors’ concerns that markets will struggle to absorb an incoming rush of government debt.
A selloff sparked by a hotter-than-expected inflation report intensified this past week after lackluster demand for a $30 Billion sale of 10-year treasuries.<<

You can say China isn't in a good position, but it seems the U.S. is not in such a great position either, is this not a fair statement?

Ah Sean Foo,
First of all many YouTube content creators have sponsors, simply to earn more money, so I'm not sure that in itself means anything.

One of my other regular shows Judge Andrew Napolitano, also has similar ads.
http://www.youtube.com/live/wvic5jmqbKk

But what is interesting is that gold has outperformed all currencies over the last few years, and it's the increase in U.S. money supply which is the factor driving it.

So regardless of anyone's motives, it's actually been a good investment.

Why gold is outperforming nearly everything so far this year
http://finance.yahoo.com/news/why-gold-is-outperforming-nearly-everything-so-far-this-year-100022695.html

Armchair, could it be that US Bonds are harder to sell because buyers
have listened to the disasters predicted to be generated by Trump and
have decided to hold off for a period to see what happens ?

"But this does not change the U.S. debt position, and their reduced ability to find buyers for new bonds, is that correct?"

True. The US position isn't great but not yet dire. It will be up to the new Trump economic changes to begin to reduce the problem if not the debt. Note that the level of debt isn't quite the issue, its the level of debt as compared to GDP. So increasing the GDP while holding debt steady is the long term solution. It will be up to the DOGE boys to reduce the budget deficit so as to allow the US to hold the debt steady. We'll see.

It should be noted that when comparing debt with GDP, the Chinese position is somewhat worse than the US....and that's if you believe the Chinese numbers, which I don't.

"You can say China isn't in a good position, but it seems the U.S. is not in such a great position either, is this not a fair statement?"

Agreed. But I think the Chinese position is far worse. The US with Trump has a clear path out of the problems. The Chinese don't, particularly if the tariffs are installed and the west continues to move against Chinese imports. http://tiny.cc/squ3001