--- title: "Meaning & Key Takeaway of: The real bubble in China is in US…" description: "\"The real bubble in China is in US Treasuries, in US dollars.\" — Peter Schiff" image: "https://sms4smile.com/quotes/i/6a2/peter-schiff-8095_bubbles_the-real-bubble-in-china-is-in-us-treasu_456555.png" --- # The real bubble in China is in US Treasuries, in US dollars. ![“The real bubble in China is in US Treasuries, in US dollars.” quote by Peter Schiff](https://sms4smile.com/quotes/i/6a2/peter-schiff-8095_bubbles_the-real-bubble-in-china-is-in-us-treasu_456555.png) [Download](https://sms4smile.com/quotes/i/6a2/peter-schiff-8095_bubbles_the-real-bubble-in-china-is-in-us-treasu_456555.png) [Open image](https://sms4smile.com/quotes/i/6a2/peter-schiff-8095_bubbles_the-real-bubble-in-china-is-in-us-treasu_456555.png) > “The real bubble in China is in US Treasuries, in US dollars.” [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. The main financial risk for China lies in its holdings of US Treasury debt and the US dollar. **In simple terms:** China’s biggest danger is US debt and dollars. Key Takeaway Diversify assets away from US exposure. Themes finance geopolitics risk China US economy Mood cautious analytical Type economic political When to use this quote - investment strategy - government policy - currency hedging - portfolio management Key Concepts currency risk sovereign debt capital flight Questions to Reflect On - How can China reduce reliance on US debt? - What alternatives exist for sovereign reserves? A Different Perspective US Treasury exposure can still be profitable if managed carefully. ★ ★ ★ ★ ★ No ratings yet [China](https://sms4smile.com/quotes/about/china/) [Dollars](https://sms4smile.com/quotes/about/dollars/) ## Related quotes > [The global boom in commodities fueled by a debt-financed infrastructure and real-estate bubble in China is over.](https://sms4smile.com/quotes/kevin-brady/the-global-boom-in-commodities-fueled-by-a-debt-financed/) [Kevin Brady](https://sms4smile.com/quotes/author/kevin-brady/) > [We can talk about republican or democratic approaches to the economy, but until you fix the student loan bubble - and that's where the…](https://sms4smile.com/quotes/mark-cuban/we-can-talk-about-republican-or-democratic-approaches-to-the-economy/) [Mark Cuban](https://sms4smile.com/quotes/author/mark-cuban/) > [The petroDollar system breaking down, where oil is no longer paid for in Dollars internationally, essentially would be the death knell to the US…](https://sms4smile.com/quotes/addison-wiggin/the-petrodollar-system-breaking-down-where-oil-is-no-longer-paid-for/) Addison Wiggin > [ Maybe \[the Republicans\] 'll find ways around it, but the financial system of the world depends very heavily on the credibility of the US… ](https://sms4smile.com/quotes/noam-chomsky/maybe-the-republicans-ll-find-ways-around-it-but-the-financial-system/) [Noam Chomsky](https://sms4smile.com/quotes/author/noam-chomsky/) > [We've discussed the public sector union people. We are messing with their bread and butter. They have their hands in the treasuries of all…](https://sms4smile.com/quotes/rush-limbaugh/we-ve-discussed-the-public-sector-union-people-we-are-messing-with/) [Rush Limbaugh](https://sms4smile.com/quotes/author/rush-limbaugh/) > [We don't invest in financial literacy in a meaningful way. We should be teaching elementary school children how to balance a checkbook, how to…](https://sms4smile.com/quotes/kabir-sehgal/we-don-t-invest-in-financial-literacy-in-a-meaningful-way-we-should/) [Kabir Sehgal](https://sms4smile.com/quotes/author/kabir-sehgal/) > [Goldman Sachs was fundamentally responsible for the crash of 2008, but by that time its former Chairman and Chief Executive Officer, Henry 'Hank' Paulson,…](https://sms4smile.com/quotes/david-icke/goldman-sachs-was-fundamentally-responsible-for-the-crash-of-2008-but/) [David Icke](https://sms4smile.com/quotes/author/david-icke/) > [People are putting their money into treasuries because they worry that the risk of putting their money into the bond market, the stock market…](https://sms4smile.com/quotes/michael-hudson/people-are-putting-their-money-into-treasuries-because-they-worry/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [Look at those hedge funds - you think they can wait? They don't know how to wait! I have sat for years at a…](https://sms4smile.com/quotes/charlie-munger/look-at-those-hedge-funds-you-think-they-can-wait-they-don-t-know-how/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [Corporations have enormous treasuries, and there are a lot of things they want from government, many of which clash with the public interest.](https://sms4smile.com/quotes/adam-cohen/corporations-have-enormous-treasuries-and-there-are-a-lot-of-things/) [Adam Cohen](https://sms4smile.com/quotes/author/adam-cohen/) > [If you have six corporate centres, six treasuries, six of everything, and then if you bring it down to one of everything, obviously there…](https://sms4smile.com/quotes/arundhati-bhattacharya/if-you-have-six-corporate-centres-six-treasuries-six-of-everything/) [Arundhati Bhattacharya](https://sms4smile.com/quotes/author/arundhati-bhattacharya/) > [Dollar depreciation leads to higher inflation and ultimately forces foreign creditors to question their rationale and indeed their sanity for continuing purchases of U.S.…](https://sms4smile.com/quotes/bill-gross/dollar-depreciation-leads-to-higher-inflation-and-ultimately-forces/) [Bill Gross](https://sms4smile.com/quotes/author/bill-gross/) > [“...unlocking the treasuries of real home love and mutual helpfulness, which the poorest may possess, and the richest cannot buy.”](https://sms4smile.com/quotes/louisa-may-alcott/unlocking-the-treasuries-of-real-home-love-and-mutual-helpfulness/) [Louisa May Alcott](https://sms4smile.com/quotes/author/louisa-may-alcott/) > [Libraries are public treasuries. They're ways in which well-meaning societies leave the wealth of the past arranged A to Z so that anyone walking…](https://sms4smile.com/quotes/francis-spufford/libraries-are-public-treasuries-they-re-ways-in-which-well-meaning/) [Francis Spufford](https://sms4smile.com/quotes/author/francis-spufford/) ## More by Peter Schiff > [Most paper money initially existed as a substitute for gold. That's what gave it value. But right now what gives a currency value is…](https://sms4smile.com/quotes/peter-schiff/most-paper-money-initially-existed-as-a-substitute-for-gold-that-s/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [Perhaps the most important reason to be skeptical of government inflation numbers is that the government, like a fox campaigning to guard a hen…](https://sms4smile.com/quotes/peter-schiff/perhaps-the-most-important-reason-to-be-skeptical-of-government/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [When the dollar collapses, it's not doing it in a vacuum. If the dollar loses value, it's doing so relative to some other currency.…](https://sms4smile.com/quotes/peter-schiff/when-the-dollar-collapses-it-s-not-doing-it-in-a-vacuum-if-the-dollar/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [Every time the market has corrected, since 2008, it's always been the Fed that's made the bottom. The Fed has always saved the market…](https://sms4smile.com/quotes/peter-schiff/every-time-the-market-has-corrected-since-2008-it-s-always-been-the/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [“Boom/bust cycles are not inevitable and would not occur were it not for the inflationary monetary policies that always precede recessions.”](https://sms4smile.com/quotes/peter-schiff/boom-bust-cycles-are-not-inevitable-and-would-not-occur-were-it-not/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [We had a very upwardly mobile economy, and that peaked around the 1950s when the typical middle-class American family consisted of a father with…](https://sms4smile.com/quotes/peter-schiff/we-had-a-very-upwardly-mobile-economy-and-that-peaked-around-the/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [Printing money creates inflation, which weakens an economy. Unfortunately, this kind of common-sense thinking never seems to penetrate academic circles.](https://sms4smile.com/quotes/peter-schiff/printing-money-creates-inflation-which-weakens-an-economy/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [The fiat-based system has produced enormous global imbalances that are straining the global economy. Ultimately, I think the whole thing gives way and what…](https://sms4smile.com/quotes/peter-schiff/the-fiat-based-system-has-produced-enormous-global-imbalances-that/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [Central banks are choosing to increase their gold holdings as a percentage of total reserves. 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They want them in the currency that they are…](https://sms4smile.com/quotes/peter-schiff/most-governments-not-all-of-them-but-most-certainly-don-t-want-their/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [It is production that creates purchasing power, not the printing press!](https://sms4smile.com/quotes/peter-schiff/it-is-production-that-creates-purchasing-power-not-the-printing-press/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) [Explore all 84 Peter Schiff quotes ](https://sms4smile.com/quotes/author/peter-schiff/) ## More Bubbles quotes > [Medicine is magical and magical is art, the boy in the bubble, and the baby with the baboon heart.](https://sms4smile.com/quotes/paul-simon/medicine-is-magical-and-magical-is-art-the-boy-in-the-bubble-and-the/) [Paul Simon](https://sms4smile.com/quotes/author/paul-simon/) > [What I do, the teacher of the nagual, is open up the bubble of your luminosity and allow the luminous being to take short…](https://sms4smile.com/quotes/frederick-lenz/what-i-do-the-teacher-of-the-nagual-is-open-up-the-bubble-of-your/) [Frederick Lenz](https://sms4smile.com/quotes/author/frederick-lenz/) > [When (the Reds) won, we loved it because we ran into the locker room and touched all the bats and gloves and got some…](https://sms4smile.com/quotes/ken-griffey-jr-2/when-the-reds-won-we-loved-it-because-we-ran-into-the-locker-room-and/) [Ken Griffey, Jr](https://sms4smile.com/quotes/author/ken-griffey-jr-2/) > [If I had my way, I would build a lethal chamber as big as the Crystal Palace, with a military band playing softly, and…](https://sms4smile.com/quotes/d-h-lawrence/if-i-had-my-way-i-would-build-a-lethal-chamber-as-big-as-the-crystal/) [D. H. Lawrence](https://sms4smile.com/quotes/author/d-h-lawrence/) > [“Forget your troubles! Try these bubbles! You can’t say nope to extraordinary soap!”](https://sms4smile.com/quotes/amber-mcree-turner/forget-your-troubles-try-these-bubbles-you-can-t-say-nope-to/) Amber McRee Turner > [In 1985, the top five percent of the households - the wealthiest five percent - had net worth of $8 trillion - which is…](https://sms4smile.com/quotes/david-stockman/in-1985-the-top-five-percent-of-the-households-the-wealthiest-five/) [David Stockman](https://sms4smile.com/quotes/author/david-stockman/) > [Oh honey, You're thirteen. You should be blowing bubbles, not guys.](https://sms4smile.com/quotes/author-name/oh-honey-you-re-thirteen-you-should-be-blowing-bubbles-not-guys/) Author Name > [I think we have a bubble in the US in government bonds, because of the quantitative easing and the negative real interest rates, and…](https://sms4smile.com/quotes/peter-thiel/i-think-we-have-a-bubble-in-the-us-in-government-bonds-because-of-the/) [Peter Thiel](https://sms4smile.com/quotes/author/peter-thiel/) > [This tennis world, this tennis community, is very much a bubble, and it's very easy to get lost in here. You know, there is…](https://sms4smile.com/quotes/johanna-konta/this-tennis-world-this-tennis-community-is-very-much-a-bubble-and-it/) [Johanna Konta](https://sms4smile.com/quotes/author/johanna-konta/) > [We thought we completely understood bubbles when we were kids. But we didn't. Bubbles are these amazing things. It's just that people aren't paying…](https://sms4smile.com/quotes/tom-noddy/we-thought-we-completely-understood-bubbles-when-we-were-kids-but-we/) [Tom Noddy](https://sms4smile.com/quotes/author/tom-noddy/) > [Titles are tinsel, power a corrupter, glorya bubble, and excessive wealth a libel on its possessor.](https://sms4smile.com/quotes/percy-bysshe-shelley/titles-are-tinsel-power-a-corrupter-glorya-bubble-and-excessive/) [Percy Bysshe Shelley](https://sms4smile.com/quotes/author/percy-bysshe-shelley/) > [I don't even know what that means. People who get credit have to get it from somewhere. Does a credit bubble mean that people…](https://sms4smile.com/quotes/eugene-fama/i-don-t-even-know-what-that-means-people-who-get-credit-have-to-get/) [Eugene Fama](https://sms4smile.com/quotes/author/eugene-fama/) > [And people who do not know the Lord ask why in the world we waste our lives as missionaries. They forget that they too…](https://sms4smile.com/quotes/nate-saint/and-people-who-do-not-know-the-lord-ask-why-in-the-world-we-waste-our/) [Nate Saint](https://sms4smile.com/quotes/author/nate-saint/) > [Where the wave of moonlight glosses The dim gray sands with light, Far off by furthest Rosses We foot it all the night, Weaving…](https://sms4smile.com/quotes/william-butler-yeats/where-the-wave-of-moonlight-glosses-the-dim-gray-sands-with-light-far/) [William Butler Yeats](https://sms4smile.com/quotes/author/william-butler-yeats/) > [“That’s my darling little doggie. Bubbles by name, bubbles for brains. You’ve got to love him.”](https://sms4smile.com/quotes/j-l-merrow/that-s-my-darling-little-doggie-bubbles-by-name-bubbles-for-brains/) [J.L. Merrow](https://sms4smile.com/quotes/author/j-l-merrow/) Browse all 821 Bubbles quotes ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "The real bubble in China is in US Treasuries, in US dollars.", "creator": { "@type": "Person", "name": "Peter Schiff" }, "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "url": "https://sms4smile.com/quotes/peter-schiff/the-real-bubble-in-china-is-in-us-treasuries-in-us-dollars/", "about": { "@type": "Thing", "name": "Bubbles" }, "@id": "https://sms4smile.com/quotes/peter-schiff/the-real-bubble-in-china-is-in-us-treasuries-in-us-dollars/#quotation", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/6a2/peter-schiff-8095_bubbles_the-real-bubble-in-china-is-in-us-treasu_456555.png", "contentUrl": "https://sms4smile.com/quotes/i/6a2/peter-schiff-8095_bubbles_the-real-bubble-in-china-is-in-us-treasu_456555.png", "url": "https://sms4smile.com/quotes/i/6a2/peter-schiff-8095_bubbles_the-real-bubble-in-china-is-in-us-treasu_456555.png", "width": 1080, "height": 1080, "caption": "“The real bubble in China is in US Treasuries, in US dollars.” — Peter Schiff", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://sms4smile.com/" }, { "@type": "ListItem", "position": 2, "name": "Quotes", "item": "https://sms4smile.com/quotes/" }, { "@type": "ListItem", "position": 3, "name": "Peter Schiff", "item": "https://sms4smile.com/quotes/author/peter-schiff/" }, { "@type": "ListItem", "position": 4, "name": "The real bubble in China is...", "item": "https://sms4smile.com/quotes/peter-schiff/the-real-bubble-in-china-is-in-us-treasuries-in-us-dollars/" } ], "@id": "https://sms4smile.com/quotes/peter-schiff/the-real-bubble-in-china-is-in-us-treasuries-in-us-dollars/#breadcrumb" }, { "@type": "WebSite", "@id": "https://sms4smile.com/quotes/#website", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "publisher": { "@id": "https://sms4smile.com/quotes/#organization" } }, { "@type": "Organization", "@id": "https://sms4smile.com/quotes/#organization", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "logo": { "@type": "ImageObject", "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png", "width": 512, "height": 512 } } ] } ```