As the government debt continues to rise by the second, foreign holdings on US Treasuries have hit new record highs. This comes after five straight months of increases. According to the February report, holdings totaled $7.96 trillion, up from 7.94 trillion in January, with treasuries owned by foreigners rising 8.7 percent from last year.
All of that might sound confusing and hard to understand, and that is kind of the point. Banks do not want you to understand the ins and outs of financial dealings so they can run off with more money. So, what does this foreign holding mean?
Economist EJ Antoni says this has come about as a result of the treasury borrowing insane amounts of money with not enough people able to lend it.
“They are having to go to foreigners and the only way to entice them to buy more debt is to offer higher yields,” he says. “The US has never had this problem before…as they continue offering higher yields, more…
