International Demand for U.S. Assets Slows

From Bloomberg:

International purchases of American financial assets grew more slowly in April as China, Japan and Russia pared demand for Treasuries, underscoring the danger of U.S. reliance on foreigners to finance its fiscal deficit…

Benchmark 10-year Treasuries, which rose after Russian Finance Minister Alexei Kudrin said it’s “too early to speak of an alternative” to the dollar, remained higher after today’s report…

Including short-term securities such as stock swaps, foreigners sold a net $53.2 billion of U.S. financial assets, compared with net buying of $25 billion the previous month.

As we’ve mentioned here before, this trend of other countries tiring of playing constant lender to fund our extravagance is real and apparently growing.  Maybe if the trend continues and becomes serious enough, our government will stop (or — let’s be realistic — slow) its debt accumulation and devaluation of the dollar.

Also interesting is the quote in the article — it’s “too early to speak of an alternative” to the dollar.  Does the fact that it’s now to early mean that perhaps not so long from now it will be the right time?

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