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 since 2011 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. 5 Comments
Posts Tagged ‘ TrimTabs ’
Biderman Explains Why $25 billion Alibaba Offering Will Hurt Stocks Short Term, Why Lower Oil Prices Helping Incomes.
TrimTabs’ President and CEO Charles Biderman joined Pimm Fox and Carol Massar of Bloomberg on their “Taking Stock” podcast last week to talk about hedge fund investing. You can listen to the full audio here.
By Chris Hamilton
By any objective measure Reserve Currencies — particularly the US dollar — are dying. The question most analysts get when discussing the reality of the US and world economic/financial situations is, if things are so dire (***see dire links below ), why doesn’t it feel like it? If all the facts stated about $6 trillion annual (GAAP basis) US budget deficits or US government total debt and obligations in excess of $90 trillion are true, why does the system still “function”??? Social Security recipients receive checks, the military is still paid, the garbage gets picked up, and stores still have stocked shelves. Life seems hectic but generally “normal”. So, is there a problem at all and if so, when and how will it go from theoretical to reality? 8 Comments
US is Bankrupt: $89.5 Trillion in US Liabilities vs. $82 Trillion in Household Net Worth & The Gap is Growing. We Now Await the Nature of the Cramdown.
There are many ways to look at the United States government debt, obligations, and assets. Liabilities include Treasury debt held by the public or more broadly total Treasury debt outstanding. There’s unfunded liabilities like Medicare and Social Security. And then the assets of all the real estate, all the equities, all the bonds, all the deposits…all at today’s valuations. But let’s cut straight to the bottom line and add it all up…$89.5 trillion in liabilities and $82 trillion in assets. There. It’s not a secret anymore…and although these are all government numbers, for some strange reason the government never adds them all together or explains them…but we will. READ MORE
TrimTabs’ Charles Biderman joined Rick Santelli on CBNC to talk about the “underutilized” labor market and millennial investment habits.
Biderman with Santelli: “Lest we forget debt only works when debt creates growth greater than the cost of borrowing.”
As yields collapse globally, equity markets hit cycle or record highs, and real estate again is stretching for new records…What gives on the dislocation of bonds vs. risk? Click here to read more