It used to be that foreign markets would fall all over themselves to purchase US Treasury bonds.
The selling of treasury bonds would, in turn, help finance the growing US debt. But the basis of foreign confidence in US treasury bonds used to be that the US financial economy was stable and reliable. In the last 10 years, this confidence has dropped. China, for one, is dumping US securities. Without foreign investment in US treasuries what will the Fed do besides raise interest rates and print money it doesn’t have?
Read in Russian Times
