Foreigners are dumping U.S. debt at a record pace
Posted by seumasach on January 25, 2017
The dollars will also be coming home. What this is leading too is the non-acceptance of dollars as international payment. However, Trump can resolve the debt issue through international agreement, above all, with China: a global reset, a trade-off between the declining hegemon and the new leader of globalization.
22nd January, 2017
While most of the country has been focused on the inauguration of Donald Trump, a very real crisis has been brewing behind the scenes. Foreigners are dumping U.S. debt at a faster rate than we have ever seen before, and U.S. Treasury yields have been rising. This is potentially a massive problem, because our entire debt-fueled standard of living is dependent on foreigners lending us gigantic mountains of money at ultra-low interest rates. If the average rate of interest on U.S. government debt just got back to 5 percent, which would still be below the long-term average, we would be paying out about a trillion dollars a year just in interest on the national debt. If foreigners keep dumping our debt and if Treasury yields keep climbing, a major financial implosion of historic proportions is absolutely guaranteed within the next four years.