Thursday January 11 ,2018

// January 11th, 2018 // Daily News

China just reminded the United States that Beijing is its banker
Bond markets took a hit following a report that China could trim its U.S. Treasury holdings
China delivered a statement soothing those worries on Thursday
China is the biggest holder of U.S. Treasurys
The U.S. government uses Treasurys to help finance itself

Markets took a hit following a Bloomberg News report that cited unnamed sources as saying that officials in Beijing have recommended China, the largest holder of U.S. Treasurys, to slow or even halt its purchases of that debt.
U.S. stocks on Wednesday snapped a six-day winning streak, and Treasury yields, already in an upswing, moved higher with the 10-year reaching 2.597 percent, their highest level since March 15. Bond yields rise when bond prices fall.
China’s foreign exchange regulator publicly refuted the Bloomberg report on Thursday, saying it cited “false information.” But the jolt to markets may have been designed as a warning to Washington, which is clashing with China over trade and other issues.
Political message?
China holds $1.2 trillion of U.S. debt — more than any country. When it buys U.S. bonds, it is effectively lending money to the United States. Washington uses bond sales to China and others to help finance itself.
The curve thrown into markets this week comes as President Donald Trump appears poised to counter China on its huge trade surplus with the United States, and as Washington loses patience with Beijing over its handling of the North Korea nuclear crisis.
On Thursday, the Chinese regulator soothed market worries when it said it was already diversifying its foreign exchange reserves, and its Treasury holdings are “market driven.”
But China is sending another message as well, Rajeev de Mello, head of Asian fixed income at Schroders Investment Management, told CNBC on Thursday.
China “will not just lay passive if the U.S. administration imposes tariffs,” he said. “I think that’s the position they want to be in, that they are a major player and not a small country on the receiving end of the U.S. big stick.”
Beijing’s indication that it’s not “tied to U.S. bond-buying” indicates more “hardball’ between the world’s two biggest economies, said Vishnu Varathan, Mizuho Bank economist.
“It has to be seen as a prelude to possible trade tension, without being a very explicit threat,” added Jens Nordvig of Exante Data.
Making ‘the Treasury’s job harder’
In a note Wednesday, brokerage firm Jefferies said that “If China stops buying Treasuries, the market could suffer.”
U.S. spending is seen rising this year, and most independent analysts expect U.S. tax revenue to fall under the GOP’s new tax plan.

Today’s Inspiration

So then those who are living the life of the flesh [catering to the appetites and impulses of their carnal nature] cannot please or satisfy God, or be acceptable to Him.
— Romans 8:8 (AMPC)

JANUARY 11, 2018

Are You Following the Holy Spirit or Your Emotions?
– by Joyce Meyer
I talk a lot about how we need to follow the Spirit, not our emotions. However, I find that a lot of people don’t even understand how our emotions operate in the first place.

Emotions are in the realm of the soul. Our soul is made up of our mind, will and emotions—it tells us what we think, what we want and how we feel. Of these three areas of the soul, it’s our feelings that get stirred up the fastest.

In other words, the wisdom and discernment of the Holy Spirit in our spirit become easily drowned out by the cries of our emotions.

The Bible says that this “life of the flesh” doesn’t please God. This doesn’t mean that God doesn’t love us. What it does mean is that He is not satisfied with nor will He accept fleshly behavior.

However, once you understand how negative emotions work, you can overcome them. Our souls may be strong, but our spirits can be stronger if we strengthen them by spending time in God’s presence. Get in the Word today, and give your spirit the strength to overcome your emotio

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