The number is almost hard to grasp. According to the U.S. Treasury Department, China owns $799 BILLION dollars worth of U.S. Treasury bonds.
When — not if — China decides to start dumping those U.S. bonds, the bottom is going to fall out of our bond market and our dollar. Owning long-term U.S. government bonds is going to be one of the worst investments you can own going forward.
More on this topic
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Senior Secured Floating Rate Bonds: The Best Investments to Own When Interest Rates Rise
(Investment U, 11/19/09)
Thinking the Unthinkable: What if China Devalues the Renminbi?
(naked capitalism, 2/18/10)
Jim Chanos Is Wrong About Investing in China
(Investment U, 3/3/10)
Bonds versus bond ETFs
(Canadian Business Blog, 11/25/09)
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