Saturday, December 19, 2009

Selling Treasuries Will Be Harder


The comments by Zhu Min, deputy governor of the People's Bank of China, referred to the overall situation globally, not specifically to China, the biggest foreign holder of US government bonds

..."The US current account deficit is falling as residents' savings increase, so its trade turnover is falling, which means the US is supplying fewer dollars to the rest of the world," he added. "The world does not have so much money to buy more US Treasuries."

IOW, the more we save, the less foreign Gummints can purchase Treasuries with USDollars.

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