Wednesday, February 29, 2012
China sold Treasuries in 2011 and guess what? Interest rates fell to record lows!
Here's another thing that the clueless Debt Doomsday crowd has been warning us about. I can hear them right now screaming hysterically about how one day China is going to start dumping its Treasuries.
Well guess what? They did. They sold a bunch last year and on balance, were net liquidating.
So what happened? Did rates spike like the misguided Doomsday guys forecast?
Actually, the opposite happened: rates collasped to new lows. The only ones who got this right were the MMT guys, like us, right here!