http://www.forexconspiracyreport.com/why-is-japan-selling-us-treasuries/ Why Is Japan Selling US Treasuries? Next to China, Japan is the biggest holder of US debt. And Japan is having second thoughts. Why is Japan selling US treasuries? Bloomberg writes that America’s biggest creditors are dumping treasuries as a warning to Trump. In the age of Trump, America’s biggest foreign creditors are suddenly having second thoughts about financing the U.S. government. In Japan, the largest holder of Treasuries, investors culled their stakes in December by the most in almost four years, the Ministry of Finance’s most recent figures show. What’s striking is the selling has persisted at a time when going abroad has rarely been so attractive. And it’s not just the Japanese. Across the world, foreigners are pulling back from U.S. debt like never before. From Tokyo to Beijing and London, the consensus is clear: few overseas investors want to step into the $13.9 trillion U.S. Treasury market right now. The prospect of more deficit spending in the USA is part of this as is the odds that interest rates will be going up making current holding less valuable. The chaos that is the Trump administration has rattled investors and that is why Japan and others are selling U.S. treasuries. How quickly might this change the U.S. debt market? Back in 2008 fifty-six percent of US debt was held by foreigners and today that number is 43%. The problem for those who want to dump US treasuries is that if everyone goes to sell at once the price goes down and foreigners as well as Americans lose. Nevertheless Japan, China, the Brits and others are gradually gettin rid of US debt. What will the end result be?

1. By www.ForexConspiracyReport.com

2. Next to China, Japan is the
biggest holder of US debt. And
Japan is having second thoughts.

3. Why is Japan selling US
treasuries?

4. Before We Continue…
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5. Bloomberg writes that America’s
biggest creditors are dumping
treasuries as a warning to Trump.

6. In the age of Trump, America’s
biggest foreign creditors are
suddenly having second thoughts
about financing the U.S.
government.

7. In Japan, the largest holder of
Treasuries, investors culled their
stakes in December by the most
in almost four years, the
Ministry of Finance’s most recent
figures show.

8. What’s striking is the selling has
persisted at a time when going
abroad has rarely been so
attractive.

9. And it’s not just the Japanese.
Across the world, foreigners are
pulling back from U.S. debt like
never before.

10. From Tokyo to Beijing and
London, the consensus is clear:

11. few overseas investors want to
step into the $13.9 trillion U.S.
Treasury market right now.

12. The prospect of more deficit
spending in the USA is part of this
as is the odds that interest rates
will be going up making current
holding less valuable.

13. The chaos that is the Trump
administration has rattled
investors and that is why Japan
and others are selling U.S.
treasuries.

14. How quickly might this change
the U.S. debt market?

15. Back in 2008 fifty-six percent of
US debt was held by foreigners
and today that number is 43%.

16. The problem for those who want
to dump US treasuries is that if
everyone goes to sell at once the
price goes down and foreigners
as well as Americans lose.

17. Nevertheless Japan, China, the
Brits and others are gradually
gettin rid of US debt. What will
the end result be?

18. Too Much Debt and Too
Few Buyers

19. There are two problems here,
first is the administration’s desire
to cut taxes without a guarantee
that there will be matching
revenues from increased
business.

20. Second is the risk of a trade war
and subsequent depression.

21. If no one wants to buy US debt
rates will go up until there are
buyers.

22. This will hugely increase the cost
of servicing America’s debt.

23. According to fixthedebt.org US
debt held by the public,
domestic and foreign debt
holders, is $14 Trillion or 75% of
the US GDP.

24. Add in debts owed to other parts
of the Federal Government such
as the Social Security Trust fund
and debt is $19 Trillion or 105% of
the GDP.

25. This can be expected to get
worse under Trump’s policies.

26. The web site lists the expected
effects of an ever
increasing national debt.

27. Higher costs of living: Large
amounts of debt mean higher
interest rates on everything from
credit cards to mortgage loans.

28. Slower wage growth: In normal
economic times, every dollar an
investor spends buying
government debt is a dollar not
invested elsewhere in the
economy.

29. That is, high debt “crowds out”
more productive investments,
leading to slower economic
growth and lower wages.

30. Generational inequality: By not
making responsible debt choices,
we are placing higher debt
burdens on our children and
threatening their standard of
living and retirement.

31. Reduced fiscal flexibility: Our
debt levels doubled between
2008 and 2013 from 35 percent
of GDP to over 70 percent, a
result of and in response to the
Great Recession.

32. We can’t afford another
recession.

33. With an already high debt, the
government has less room to
respond to future crises such as
international events or economic
downturns.

34. Fiscal crises: Unchecked debt
growth could eventually lead to
a fiscal crisis, as recently
occurred across Europe.

35. At that point, investors in U.S.
debt will demand higher returns,
driving up interest payments,
and leading to a debt situation
spiraling out of control.

36. Japan, China, Britain and others
have problems of their own.

37. They are selling US treasuries
because they doubt the full faith
and trust of the American
government in the era of
nationalist anger personified by
the current president.