The World Has Not Added to Its US Debt Holdings Since 2014
Foreigners have become unwilling to help bear the burden of never-ending and ever-expanding US government deficits
Take a look at this very important chart:
It shows foreign holdings of US debt have been basically flat since Q1 2014.
The growth of foreign holdings of US debt ended five years ago and has not budged since.
For five years now foreign buyers have not added any more US debt to their portfolios and reserves.
They are not selling, and for now, they are also still recycling the dollars they get when the bonds mature back into US treasuries.
But they’ve long stopped sinking more and more money into it.
Aside from a short period during the 1990s when the US wasn’t running deficits in the first place this is quite unprecedented.
Foreigners have become unwilling to help bear the burden of never-ending and ever-expanding US government deficits, leaving domestic buyers and the Federal Reserve money printing operations as the sole financiers.
It’s only a matter of time until the domestic buyers wise up as well, leaving the printing presses as the only option — at which point, the foreigners, and the domestic holders, will all want to sell at once.