tag:blogger.com,1999:blog-1892824566694270102.post7637993720347670975..comments2024-01-27T00:46:34.345-08:00Comments on How Fiat Dies: Foreign Treasury Holdings and PettisVincent Catehttp://www.blogger.com/profile/06502618776820144289noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-1892824566694270102.post-86392096157752026012021-01-02T20:34:03.379-08:002021-01-02T20:34:03.379-08:00I realize this post is quite old, however I feel i...I realize this post is quite old, however I feel it's worth pointing out for anyone else happening across this post that the possibility of foreign purchases of US assets besides bonds is the first possibility Michael Pettis considers in the article you linked. In hindsight, we can see that indeed foreign governments stopped buying US gov't bonds, and shifted purchases to corporate stocks. As Mr. Pettis suggests in his article, the trade deficit was unaffected by this shift. Private investors seem to be a different story, though, and have increased holdings in both US debt and stocks. Basing these claims on Treasury data available from the Treasury's website.Anonymousnoreply@blogger.com