For the last two months in a row, foreign purchases of US treasuries have not been enough to cover the current account deficit.
When does that start to matter?
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6 comments:
Roger
I am very excited out this prospect. Rising rates will enable me to finally get a decent return on my cash. Cash will be king! Mitchelg
While you may be correct, I view this as having a careful what you wish for feel to it.
The dollar is somewhat over valued - so what
the dollar will slowly adjust - fine
The debt is in dollars if foriegners do not want treasury notes the fed can always buy any extra on he open market with dollars (the fed has lots of dollars)
No sky is falling here - adjustments yes (but they are necessarry)
Immediately.
I agree, with Roger. this is worrisome---higher rates will inevitably come and that may very well damage our economy, and earnings.
With new housing starts down, US treasuries not selling, fed expected to boost interest rate to stop the US dollar from loosing altitude, I don't think anyone should start worrying just yet. The age old theme song of the carefree investor in times of change is to be happy. Anyway, is'nt that the way the song goes?
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