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  • US National Debt Spiked $363 billion in Two Weeks, $1 Trillion in 12 months. But Who Bought This Pile of Treasury Securities?

    From wolfstreet.com

    The US Gross National Debt has jumped by $363 billion in the two weeks since President Trump signed the law that suspended the debt ceiling. This surge pushed the total debt to $22.39 trillion. That’s up by $1.01 trillion from 12 months ago. And these are the good times. Watch this debt balloon during an economic downturn! Whoopee! Note the technical term at the top right of the chart: The question, “Who the heck is buying all this debt” – because every dime has to be bought by some entity – is becoming increasingly nerve-wracking, particularly as the trade war with China puts the possibility out there that ... (full story)

The rate of return has so far been superb but that is not mentioned for some odd reason.
Quoting AnniLi
The rate of return has so far been superb but that is not mentioned for some odd reason.
Is it that those buying the debt are making a hell of money?
excellent spending, us gov!
So over those 12 months, the government added $828 billion to its debt. Foreign investors bought $411 billion of it; the Fed dumped $265 billion; and US government funds acquired $106 billion. Leaves $576 billion that someone must have bought. Who?

The only one left.

American institutions and individuals added $576 billion of Treasuries to their holdings, bringing them to $7.46 trillion. US banks were large buyers of Treasuries. According to the FDIC, in the first quarter, the latest data available, banks added $55 billion in Treasuries to their holdings, “the largest quarterly dollar increase since fourth quarter 2014,” the FDIC said.

-- US gov funds brought US government debt.. seems legit!
-- If the Banks buy it the government can bail them out if it all goes belly-up.. it makes sense!

/sarcasm
grist for the mill
The Chinese need to keep buying treasuries to sustain their own economy and obligations to their citizens. China cannot "weaponize" its US Treasury holdings without failing on obligations to its citizenry, contrary to sensationalist Western media headlines. Look it up.
Enter Signature
No during tarp on Wednesday’s it was deemed that if demand wasn’t high enough the fed would buy its own bonds.. that’s whats happening an inside job where they buy their own and lend it for a cut. Only until debt problem is solved ofcourse and the can kicking is finished
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  • Posted: Aug 18, 2019 12:35am
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     Newsstand
    Category: Fundamental Analysis
    Comments: 7  /  Views: 5,821