China and Blackstone - leverage?

[rabot10]

Re: China and Blackstone - leverage?

Thanks for explaining WOOT!!!, Spartacus.

If one is worried about the value of the dollar and wishes rather to put dollars into hard assets, it seems in my micro-economic mind that one would wish not to hold dollars or US Treasuries. Isn't the purpose of borrowing against a potentially depreciating asset counterproductive? To me it is, but that is just me.

Barron's has a piece today on these Sovereign Wealth Funds http://online.barrons.com/article/SB..._magazine_main, and that writer, Andrew Bary seems to support your contention, "The Chinese and other big holders of Treasuries aren't apt to sell them, but new demand could decline. Stocks, real estate and commodities, on the other hand, all could benefit." However, he also suggests that Treasuries "could be hurt if countries plow new money into sovereign wealth funds rather than keeping it in official reserves, which are invested in government bonds."

This all looks to me as though holding onto US Treasuries is a losing proposition.

U have a mind? Please don't go there