China bypasses Wall Street - History
Posted: Mon May 21, 2012 3:08 pm
I don't know about anyone else but this concerns me.... a sign of things to come? It's a great article, but to allow a "Communist Country" to buy direct... I thought we were idiots for getting into such deep debt with them in the first place. 
http://www.reuters.com/article/2012/05/ ... 1720120521
Exclusive: U.S. lets China bypass Wall Street for Treasury orders
China can now bypass Wall Street when buying U.S. government debt and go straight to the U.S. Treasury, in what is the Treasury's first-ever direct relationship with a foreign government, according to documents viewed by Reuters.
The relationship means the People's Bank of China buys U.S. debt using a different method than any other central bank in the world.
The other central banks, including the Bank of Japan, which has a large appetite for Treasuries, place orders for U.S. debt with major Wall Street banks designated by the government as primary dealers. Those dealers then bid on their behalf at Treasury auctions.
China, which holds $1.17 trillion in U.S. Treasuries, still buys some Treasuries through primary dealers, but since June 2011, that route hasn't been necessary.