Adonis Diaries

Chinese Treasury Bills are flooding the markets

Posted on: September 15, 2009

Chinese Treasury Bills are flooding the markets; (September 15, 2009)

I stated in a previous post that the treasuries of the USA, European States, and the developed nations are practically being employed as middlemen between their own investors and the Chinese investors. This was made possible because Chinese households have been saving for two decades and had accumulated three folds their saving during the last 7 years. These savings are re-invested in purchasing treasury bills of the developed States and primarily US Treasury Bills. The treasury bills of these developed nations are issued to re-finance their public debts.

            The public debts of the USA, France, and Britain are expected to reach 90% of their GNP in a couple of years; Japan will hit the 200% mark. Obligatory Crash is more imminent than forecasted previously. The real values of the treasury bills of the developed nations might collapse abruptly.   

Pretty soon, the citizens of the developed nations will start bypassing their State middlemen and purchase directly Chinese treasury bills for higher returns; especially that the Chinese currency is undervalued and cannot but goes up. Then, what will happen?  Would the USA declare the Chinese treasury bills illegal or not marketable in the US market?  The USA did that previously with many State and even too far in its aggressions, but antagonizing China is a different ball game.

            I know that the Chairman of the Chinese Central bank has an idea, but so far he could not find means to activate it.  I suggest to the Chinese Central Bank to get in touch with Lebanon Central Bank Chairman, Riad Salameh, and iron out a win-win deal.  Lebanon banking system has branches in most of the Middle East and they can promote Chinese treasury bills in this region.  I also suggest to the Chinese Central Bank to deposit $3 billions in Lebanon Central Bank, at very low-interest rate, to stabilize any attempts for punishing the bold move of Lebanon. 

It goes without saying that Israel Central Bank or any Zionist financial institutions are not to be given exclusive domain for promoting Chinese treasury bills: these institutions have proven to blackmail people and States, any time they get hold of any kinds of leverage.

Israel had always received the unconditional backing of the successive USA Administrations; Lebanon can enjoy the heavy weight Chinese backing to balance out the odds.

            I have not seen a treasury bill, much less a Chinese one, to know if they are in the market or flooding any market. All that I know is that Chinese treasury bills will become a common investment obligatory paper in the major markets very soon: It is inevitable. For sure, Chinese treasury bills will outperform all these shitty derivatives or their “botoxed-up” new gimmicks that liberal capitalism is expert in pulling off white rabbits from their magician sleeves.

Note: When I published this article, it was meant as a joke and a warning.  This is no longer the case.  Greece, Italy, and many European States are begging China to buy their treasury bills…

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September 2009

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