Via Zero Hedge.
The bar graph tells us that a year ago, China held the most US Treasury bonds, then the Fed, then Japan. Now the Fed is clearly number one, and China is cutting back a little while Japan is increasing its holdings, to the point that Japan may overtake China on the rankings.
My naive reading of this: China is cutting its losses (after all, the main gain of being such an enthusiastic lender to America was technological and strategic, an opportunity for ten years of "peaceful rise"), America is devaluing its way out of its debts, and also following the Japanese path. The fates of China and America are still tied together, but there is finally some decoupling occurring, after a decade of the unsustainable "vendor financing" relationship, whereby China lent America the money to buy the things that China makes.
