Thursday, May 16, 2019

We shouldn't really worry too much about China dumping $200 billion worth of US Treasury securities since 2012


The total has fallen by some $200 billion since the peak in 2012 . . .. Foreign government ownership of U.S. debt hit a record of $6.47 trillion, up 4% from a year ago, as the government’s total debt continues to swell and now has topped $22 trillion. Foreign residents increased their holdings by $23.9 billion.

Yeah, well, in May 2012 grand total foreign holdings came to about $5.27 trillion. In March 2019 the figure is north of that by $1.2 trillion across the globe.

US Treasury securities remain very popular, secure investments which pay better than most anything out there. Your only major alternatives paying better than for the US 10-year are Brazil, Mexico, India, Greece and Italy. Like the world is going to go shopping in those places instead of the US.

Gimme a break!