China Putting Hard Brakes on US Treasuries, Shying away from US Dollar?

Amidst the "fake default" circus of last week, three alarming nuggets of information were released which bear repeating. They all are drums beating in China to start moving away from US Treasuries/US Dollar, and diversify into non-US Dollar alternates.

China Commerce Minister adviser warns may likely quit buying US Treasuries

Commerce Minister adviser to Chinese government, Mei Xinyu said that if America does default on its loan obligations, China will likely quit buying U.S. Treasury bonds.

Of course as blogged before, there was no question of any real debt obligation default. There were prospects of industrial complexes contract defaults. But that's besides the point. What's significant in above statement is someone from official Chinese government going on record, issuing warning of quitting to buy US Treasuries.

Such hypotheticals aren't enough, there is more. There are already concrete diversification moves underway in China, away from the US Dollar! Hardly a surprise, sounds like a very logical move.

China foreign exchange reserve diversifying into real estate investments in Europe

There have been media reports this week that China's State Administration of Foreign Exchange, the body that handles the country's $3.66 trillion of foreign exchange reserve, is looking to diversify into real estate investments in Europe.

And while the last nugget doesn't involve pronouncement from any official Chinese government body, it is serious angst within social media in China about illogical over-dependence on debt-ridden US Dollar.

China wonders: Why do we own so much U.S. debt?

Zhaoge1982 asks, "What's wrong with China? You buy [America's] debt, they refuse to pay and what else can you do?

Wanwan7 writes, "China shouldn't have purchased so much U.S. debt. You think you are in control, but you are actually the real victim.