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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsWhy is Russia dumping it's US Treasury holdings?
https://wolfstreet.com/2018/07/17/russia-dumped-most-all-its-us-treasury-holdings-disappeared-from-list/The grand total of US Treasury bonds, notes, and bills held by official foreign investors (central banks, governments, etc.) and non-official foreign investors rose by $44.6 billion to $6.17 trillion at the end of May, according to the Treasury Departments TIC data released Tuesday afternoon. This is in the middle of the range of the past 12 months.
But Russia stands out by its sudden absence.
Russia was never a large holder of US Treasuries, compared to China and Japan. In March it was in 16th place with $96.1 billion in Treasury holdings. In April, it liquidated $47.4 billion of its holdings, and ended the month with $48.7 billion. That was down 69% from May 2013 ($153 billion). It knocked Russia into 22nd place behind the UAE and Thailand.
And in May, Russia liquidated more of its holdings and disappeared entirely from the TICs list of the 33 largest foreign holders of Treasuries. The smallest one on the list was Chile, with $30.2 billion. Russias holdings fell below that amount.
So we go to the TIC list of all countries that hold US Treasuries, and find that Russias holdings have plunged to $14.9 billion:
Russias holdings have plunged to $14.9 billion:
(graph available at link above)
Scoopster
(423 posts)They're dumping it because they know the economic shitstorm is coming, and that the value of those bonds is gonna plummet big time.
DBoon
(22,288 posts)as a response to inflatio
Achilleaze
(15,543 posts)and the republicans are playing right along with them
unc70
(6,095 posts)They are broke because of the sanctions.
Amishman
(5,541 posts)That jet program was highly publicized and it's cancellation a major embarrassment. They're close to broke.
Oil prices have been hurting them ever since US shale output soared, and the recent decision by OPEC to raise production really hurts Russia
beachbum bob
(10,437 posts)Play would be to dump US treasuries forcing a run up in the interest rate and US market chaos. So putin may have some inside info on this happening and dumping holdings while they can. The big picture has always been to destroy the American empire.
alwaysinasnit
(5,037 posts)This would definitely play into Putin's fantasy of bringing the US to it's knees without ever having fired a single shot.
beachbum bob
(10,437 posts)longer the worlds reserve currency and then all hell breaks out as the dollar and markets crash and Americans wake up to a destroyed country without ever firing a shot.
The dream of putin and china
Trump is the guy can make it happen
alwaysinasnit
(5,037 posts)beachbum bob
(10,437 posts)Each one of us gotta do our part.
sdfernando
(4,896 posts)bring the US to its knees. The treasury bonds will be worthless, leaving not only the US destitute but also doing significant damage to other big world economies like, China and Japan, as well as others.
kentuck
(110,950 posts)Is it possible to freeze treasury notes? I would think so.
alwaysinasnit
(5,037 posts)individuals, businesses, and officials.
https://en.wikipedia.org/wiki/International_sanctions_during_the_Ukrainian_crisis