But China and the tax havens like Luxembourg, oh my!
Where would GDP growth be without federal borrow-and-spend?
China, Japan, other foreign entities dumped US Treasuries. But someone had to buy. Here’s who. So far, so good.
Debt out the wazoo, but someone is still buying it.
It shot up 240% from long-run average and 500% from a year ago.
Moody’s: It “will exacerbate already material fiscal challenges on the horizon.” If unaddressed, “social tensions will continue to rise.”
But wait — these are the Boom Times!
China, Japan, other foreign investors, the Fed, US government funds? Nope.
Russia, Japan, and the Fed dumped, China hung in there…. But who bought?
Good thing Russia never held as many Treasuries as China and Japan. The scenario would have been different.