China dumped billions of America’s debt in December. The largest owner of U.S. debt, China sold $18 billion of U.S. Treasury debt in December. And it’s not alone. Japan sold even more: $22 billion. In the past year, Mexico, Turkey and Belgium have also lowered their holdings of U.S. debt, all of which have led to a record annual dump by central banks.
Many countries are suffering from the global economic slowdown, forcing central banks to pull out all the stops to help buttress their economies. Central banks in Japan and Sweden have resorted to negative interest rates to spur banks to lend more; the European Central Bank is buying bonds issued by its member countries; the People’s Bank of China. READ MORE