Wednesday, June 26, 2013

Foreign Holdings of US Treasuries Reported Down

The foreign holdings of US Treasuries seems to be down $70 billion in the latest reporting period.  This is only 1.2% but foreign holdings usually seems to go up every month.   There is a chance this is just some artifact of a change in the way they report the numbers as the previous reporting periods all have a footnote next to their date.   But it might be the start of an important new trend where foreigners don't want to hold US Treasuries or dollars.   If that is the case there is a risk that this starts the bond panic that results in the main hyperinflation feedback loop.

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