Here at Casey Research, we've been watching the actions of foreign holders of U.S. dollars as closely as a Las Vegas pit boss watches a card player on a $1 million winning streak.
Many of those in the deflation camp largely, or entirely, ignore the potential role these foreign holders may play in the drama now unfolding. But in fact, foreigners have, over the last decade, been by far the single most important source of buying for U.S. Treasuries.
Given the Treasury's need to flog on the order of $3 trillion worth of its unbacked paper this year just to keep the government's doors open - and that is a four- or fivefold increase over 2008 - the foreign buyers not only have to show up for the Treasury auctions, they have to show up in droves.
Watch Streaming Broadcast Live:
Share this page with your friends
on your favorite social network:
Loading...
1 Comments in Response to Foreign Investment in the U.S. - Going Down, Down, Down
Wonder why? Who the hell would wanna buy into this sinking ship other than the Chinese? And that's only because they've been suckered - like the Indians once were by the Spaniards who gave them plastic beads in exchange for gold - the Chinese are giving away trucks full of money in exchange for American war toys.
"Investing" into the US would be like buying a month-vacation on the Titanic immediately after it hit the iceberg.