Reports are out that China may be well on the path to becoming dethroned as the global king of U.S. Treasuries. According to sources familiar with the matter, China has recently begun liquidating its massive U.S. Treasuries stake to help support its hobbled currency.

The Strategy

Over the past month, the People’s Bank of China (PBOC) has been dumping UDS and buying yuan to stabilize the exchange rate. The latest available Treasury data indicates that China likely holds about $1.48 trillion of U.S. government debt.

Major Impact On Treasuries Market

Although the decision by China to scale-down its massive U.S. Treasuries position is far from shocking given its current currency predicament, the liquidation of such a large position, if it continues, could wreak havoc…

Click here to continue reading

Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!