I mostly agree, but they don't really have much of a choice. They have to put the dollars somewhere, and when you're dealing with that many, Treasury bills are really the only game in town.
China has about $1.2 trillion (with a 't') in Treasury bills. US GDP last year was about $15.7 trillion.
Bank of America has about $2 trillion in assets. If the amount of money you give to a bank is more than half its current assets, then your relationship to the bank is fundamentally different than anyone else. You're not a customer. You're an owner. That's the scale of money that we're talking here. Once you have this much money to store, it becomes clear that there's no such thing as a completely safe place. But, out of all of the unsafe places, US Treasury bills are less unsafe than everything else.
