Foreign Holders of U.S. Treasury Debt
April 24, 2009 12:14 pm
We have all heard that there is a great deal of U.S. debt owned by China and other Asian countries, but here is the breakdown of over $3 trillion that is on loan to the world. Obviously Ben and the team need to keep a lot of people happy and are continually juggling the needs of America with the concerns of the world.
For now, rates will stay artificially low to keep all happy. There will be a time though that we see a change in the pricing, once the Fed stops purchasing non-stop. That day will be a glorious move for the Inverse 20-year Treasury ETF ( TBT). Of course first we need to see our economy improving, so I don’t think that you will miss the move. Keep TBT on your watch list.