Tony, this YT e-ziner, covers China related economic topics.
He has recently started “Market Update” as a complement to his “China Update” channel.
In this YT, at 4:20, Tony discusses the Moody’s downgrade of us debt and the implications for people in other stock exchanges holding US debt.
Tony says that large funds, pension funds and mutual funds, are required by their bylaws to sell or not hold treasuries and and debt that are rated less than top tier. The Moody’s downgrade, along with previous downgrades by Standard and Poors and Fitch, means that the US debt no longer meets the requirements. This poses problems for foreign mutual funds and pensions and such.
Tony says that the Japanese ratings agency, RNI, has maintained its US rating, which makes the US treasuries available to the Japanese exchange. He also says that the Hong Kong pension funds rely on RNI rating, in order to be legally able to hold US treasuries.
Japan, thru the RNI, holds a top tier card in trade negotiations with TIG?
FWIW
ralph