The collapse in Treasury bonds now ranks among the worst market crashes in history. Since March 2020, Treasury bonds with maturities of 10 years or more have plummeted 46%, Bloomberg says. That’s just under losses seen in the stock market when the dot-com bubble burst at the end of the last century. The bond rout is worse than the one seen in 1981 when the 10-year yield neared 16%.
Where Have All the Foreign Buyers Gone for U.S. Treasury Debt? Overseas private investors and central banks now own about 30% of all outstanding U.S. government debt, down from roughly 43% a decade ago. Foreigners no longer have an insatiable appetite for U.S. government debt. That’s bad news for Washington.
The U.S. Treasury market is in the midst of major supply and demand changes. The Federal Reserve is shedding its portfolio at a rate of about $60 billion a month. Overseas buyers who were once important sources of demand—China and Japan in particular—have become less reliable lately.
Without buyers for US debt, the printing of money becomes a direct input into inflation. The US must tighten up spending. Americans must insist that Congress make significant spending cuts. Interest on our debt is now over a trillion dollars a year.
Zero Hedge reported, “More than 40,000 hours of Jan. 6 Capitol Police security video will be made public on a dedicated website starting immediately and ramping up in the coming months, House Speaker Mike Johnson (R-Louisiana) announced on Friday.
Wait a minute! A politician who actually kept his promise? No wonder the Democrats are scared shitless over Mike Johnson. Oh, I forgot. They hate him because he is a Christian
Don Surber noted:
The Biden administration may approve a sanctions waiver on Tuesday that will allow Iran to access at least $10 billion in previously frozen funds held in Iraq, a closely watched decision that comes just a month after the Tehran-backed terror group Hamas launched an attack on Israel that left 1,200 dead.
If Palestinians had murdered twice as many, would Biden have given Iran $20 billion?