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Aug. 17 (Bloomberg) -- Foreigners renewed purchases of American financial assets in June, as investors sought safe haven in Treasuries amid concerns about the timing of a recovery in financial markets and economies worldwide. Total net purchases of long-term equities, notes and bonds were a net $90.7 billion, more than forecast and compared with net sales of $19.4 billion in May, the Treasury said today in Washington. Net buying of U.S. government notes and bonds totaled $100.5 billion, the most since records began in 1977, after net selling of $22.6 billion in May. Investors in Japan and the U.K. increased their holdings of U.S. assets as the Obama administration sold debt to finance a record budget deficit and fund economic stimulus spending. Recent signs of stabilization may further boost the flow of foreign funds into the U.S. in coming months, even as emerging powers such as China and Russia question the U.S. dollar’s dominance in the global economy. “As we have increased issuance, overseas holdings of our assets have gone nowhere but up,” said Dan Greenhaus, chief economic strategist at Miller Tabak & Co. in New York. “Despite all the worries regarding the potential of foreigners to rotate out of U.S. dollar-denominated assets, which will eventually cause a collapse in the dollar, no such action has been witnessed.”
It's also a bit of a vote of confidence from the World Community for the American Government's ability to turn things around for themselves, even if the American people aren't quite as convinced.
China’s holdings of notes and bonds climbed $26.6 billion in June to $617.7 billion, a 4.5 percent increase, while bill holdings fell 25 percent to $158.7 billion, the Treasury’s data showed.
Remember, all that debt MUST be settled at some future point, with the deficit at the high point that it is, one has to wonder how we are gonna pay the bill when it comes due.
Originally posted by fraterormus
The more corrupt they are, the more likely they will be jealously guarding that Revenue Stream!