# CNN has just reported that China is dumping all US government bonds



## BillS (May 30, 2011)

http://webcache.googleusercontent.c...l-bonds-declares-south-china-sea-closed-zone/

BREAKING: China dumps all bonds, declares South China Sea closed zone
China has just announced, in response to what it calls US aggression, that it has placed all its US treasury bonds on the open market and simultaneously has declared the South China Sea a closed zone. This is a developing story, please check for updates.

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If they really do that it should destroy the US bond market.


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## BillS (May 30, 2011)

Now it turns out that CNN was hacked and the story was fake. That's good.

http://www.zerohedge.com/news/2014-01-23/hacked-cnn-reports-china-dumps-all-us-bonds

Luckily this time it was merely a a hack, as can be seen by the "article's" subsequent deletion from the live page and CNN's mea culpa:

CNN SAYS SOME OF ITS SOCIAL MEDIAL ACCOUNTS WERE COMPROMISED
CNN SAYS COMPROMISED ACCOUNTS INCLUDE TWITTER PAGE, FACEBOOK
But perhaps more telling is the complete lack of market response to even the hacked article, so different to the AP hack from last summer when the market plunged if only briefly following a hacked AP tweet. Just goes to show how irrelvant the once upon a time only news network has become.


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## FatTire (Mar 20, 2012)

http://www.cnn.com/search/?query=ch...primaryType=mixed&sortBy=relevance&intl=false

wierd that the blurb is still on their page..


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## Padre (Oct 7, 2011)

FatTire said:


> http://www.cnn.com/search/?query=ch...primaryType=mixed&sortBy=relevance&intl=false
> 
> wierd that the blurb is still on their page..


If you follow both of those search results you will see they have been removed...

That being said its a odd thing for a hacker to post don't you think...could someone be crying wolf to sow confusion when its for real? If so it might be for real soon...

Sent from my XT1080 using Survival Forum mobile app


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## FatTire (Mar 20, 2012)

Yeah they link to a page that says page not found.. why would they leave the links up tho? Maybe thats puter stuff thats beyond me..


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## Dixie (Sep 20, 2010)

And down below that it says China to move people from the rural areas to the city and turn farmers into consumers. Hummmm, now where have I heard that before?


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## Padre (Oct 7, 2011)

I think its just the way the search engine caches its results

Sent from my XT1080 using Survival Forum mobile app


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## Dakine (Sep 4, 2012)

without being there to know what exactly is happening...

why redirect to webpages not available?... they may not be back in complete control of their web presence yet. For right now, this may be what they can do while they sort out bigger problems.


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## Sentry18 (Aug 5, 2012)

How can people tell when CNN is hacked? Most of what they report is fictitious BS already. Like trying to find bird poop in can of white paint.


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## labotomi (Feb 14, 2010)

BillS said:


> But perhaps more telling is the complete lack of market response to even the hacked article, so different to the AP hack from last summer when the market plunged if only briefly following a hacked AP tweet. Just goes to show how irrelvant the once upon a time only news network has become.


I think it's more a case of the story being too unbelievable. China could not dump all the bonds at once and to announce the intent of selling off all holdings would drive prices down on the very thing they're selling.


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## Elinor0987 (May 28, 2010)

Sentry18 said:


> How can people tell when CNN is hacked? Most of what they report is fictitious BS already. Like trying to find bird poop in can of white paint.


That's why it's also referred to as *C*omedy *N*ews *N*etwork.


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## BillS (May 30, 2011)

labotomi said:


> I think it's more a case of the story being too unbelievable. China could not dump all the bonds at once and to announce the intent of selling off all holdings would drive prices down on the very thing they're selling.


China could do that if their goal was to destroy the Treasury Bond market as quickly as possible. Perhaps they would do that in response to what they would consider to be an act of war.

I think though that China already got rid of the bulk of their long-term Treasury Bonds by the Fed's program of Operation Twist. The goal was to redeem higher rate longer term bonds and replace them with lower rate short term bonds. In other words, China could just redeem the bonds as they mature and not buy any new ones.


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## labotomi (Feb 14, 2010)

BillS said:


> China could do that if their goal was to destroy the Treasury Bond market as quickly as possible. Perhaps they would do that in response to what they would consider to be an act of war.


They could give them away if they really wanted. As long as we're throwing out possibilities no matter how outlandish.


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## labotomi (Feb 14, 2010)

BillS said:


> I think though that China already got rid of the bulk of their long-term Treasury Bonds by the Fed's program of Operation Twist. The goal was to redeem higher rate longer term bonds and replace them with lower rate short term bonds


Any source for this showing a meaningful amount?


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## Boomy (Mar 17, 2012)

On the brightside, they would only have enough left to repo California. Sorry Grimm, but you know that your always welcome in the Republic of Texas.


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## BillS (May 30, 2011)

labotomi said:


> They could give them away if they really wanted. As long as we're throwing out possibilities no matter how outlandish.


Why would you say it's outlandish? We are clearly China's enemy based on their ideology and also based on their choosing countries like Iran and North Korea as allies. Communist China saw how we defeated the Soviet Union economically and used that model as a way to defeat us. The bottom line is they could destroy the US economy without firing a shot. That would leave China as the world super power.


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## BillS (May 30, 2011)

labotomi said:


> Any source for this showing a meaningful amount?


I don't think anyone knows the makeup of China's Treasury bond holdings but it's clear that they got rid of their long term bonds:

http://www.economicpolicyjournal.com/2011/10/china-stuffing-operation-twist-down-ben.html

"Just news of Ben Bernanke's 'Operation Twist' was enough to get China and other Asian countries to start hitting the Treasury security market bid. China sold $36.5 billion in U.S. Treasuries to cut its holding to $1,137 billion in August."


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## labotomi (Feb 14, 2010)

BillS said:


> I don't think anyone knows the makeup of China's Treasury bond holdings but it's clear that they got rid of their long term bonds:


Your link doesn't indicate anything about getting rid of the long term bonds. It actually reports that China decreased it's US bond holdings by about 3%.


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## labotomi (Feb 14, 2010)

BillS said:


> Why would you say it's outlandish? We are clearly China's enemy based on their ideology and also based on their choosing countries like Iran and North Korea as allies. Communist China saw how we defeated the Soviet Union economically and used that model as a way to defeat us. The bottom line is they could destroy the US economy without firing a shot. That would leave China as the world super power.


China as an "enemy" isn't outlandish. Announcing their intent and dumping over 1,100 billion in Treasury Bonds at once is.


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