Holistic Survival
Welcome! If this is your first time visiting Jason Hartman's website, please read this page to learn more about what we do here. You may also be interested in receiving updates from our podcast via RSS or via email if you prefer. If you have any questions about financial survival feel free to contact us anytime! Thanks!

Psst, wanna buy a T-Bond?

Bookmark and Share

China, which in September 2008 became the largest holder of U.S. government backed treasury bonds, decided to start unloading them in December 2009. A recent report by the Treasury Department showed the communist empire dumped almost $35 billion (that’s with a ‘b’) worth of notes in the last month of last year, leaving Japan as the primary foreign holder of T-Bonds.

What’s the matter, China? Getting skittish? You bet they are and with good reason. The budget deficit is to the moon and the American dollar is flat-lining. Beijing is worried about dollar-based assets and even more nervous about an out of control U.S. federal government spending like the economy runs on Monopoly money. Uh, boys, you don’t want to lose this game.

Treasury Secretary Geithner trotted over to Beijing last June to reassure the Chinese that their money is “very safe” and he’s going to be dealing with that budget issue shortly. To quote Dr. Evil, “Riiigghht.” Even the state media is on record as saying that continuing to buy low quality American assets will devalue the entire Chinese economy.

Hmm, we wonder if all this has anything to do with Barack Obama’s planned visit to Tibet to meet with the Dalai Lama, U.S. arms sales to Taiwan, or China’s dispute with Google? Regardless, when the communists don’t trust you it’s time to start re-thinking your investment strategy, especially if it includes government securities.

How about real estate? It’s the only investment liable to work in the future. Learn how for free at www.JasonHartman.com.

The Holistic Survival Team