China Goes Straight to the United States Treasury [AUDIO]
(Reuters) - 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. Locally, Bob Seidenschwartz, a financial advisor with S. G. Long in Missoula, says the move is understandable, since China holds such a large percentage of our debt. Comments from Seidenschwartz are below.