China - a net seller of US Treasuries for the last five months

Chuck Butler caught this today ins his Daily Pfennig - it is not a good trend:

"Yesterday, I told you about the what I believe is going on in the shadows of U.S. Treasury auctions... And today, I'll tell you one of the reasons there are Chinese Fire Drills going on every time there's an auction... Did you know that China has now been a net seller of some $45 Billion of U.S. Treasuries over the last five months?

Alan Ruskin, chief international strategist with RBS Securities Inc., said that was "a long enough period to hint strongly at a trend."

He went on to write... "Much of China's selling has been in short-dated Treasury bills, but China has not indicated that instead it will buy longer maturity U.S. government notes and bonds. "That is the bad news for the U.S. dollar and the Treasury market."

Folks, I believe gold demand will rise on this news - it sure did yesterday! Gold predictions of $1,300 to $1,600 per ounce by year end seem reasonable. There is your hint - buy gold!

"Dear Comrades In Golden Arms,I agree fully with Trader Dan's assessment of the IMF statement. This is a duplicate of the IMF action in the 1970s. It turned out to be the most positive event as each time the IMF held an auction of their gold they facilitated entry for large investors at singular prices.It will be no different this time around. Gold will rise because of IMF selling as it did in the 1970s.I assure you that history will repeat itself on the same circumstances.Respectfully,Jim"