I live in Spain, and between time zone differences and enjoying the late beautiful late Summer weather, I am slow in following up on stuff.
Much is made of the threat the US treasury market if the Chinese ever decided to unwind their position and this risk seems to be increased by China's need to fund CNY purchases as they manage their dirty float. I am more relaxed.
The market can absorb a lot. (The Russians dumped $100 billion Treasuries last year and the market asked for more.)
If China wanted to get out, it is technically possible for the Fed to buy the lot. They already own $2.5 trillion in US Treasuries and everyone has got used to that. Buying another $1.3 trillion would raise an eyebrow or three and piss off lots of US commercial bankers, but it wouldn't collapse the debt markets, or cause the US government any financial stress. (It would actually improve the US government's budget position by about $25 billion a year but that is just a drop in the ocean).
I feel that I have walked into a conversation half way through. What is this thread about?
The headline is "S&P/ASX MidCap 50". Are you contemplating the macro treats to this sector posed by the weak Chinese economy?
(20min delay)
