HN

Comments (117)

• Menu

  1over137
  US everything has become unappetizing for everyone outside the US.
• Menu

  Arubis
  Dedollarizing the world economy has more net losers than the US (though that's the obvious one).It's not without its benefits -- over the last couple decade, the US has found ways to weaponize access to USD, so if you're not a fan of having a country other than your own able to effectively regulate or sanction you and your business, there's some niceties here.Being able to trade and invest in a stable, highly liquid, easily converted, low risk currency was a net win for most of the world for about half a century. There isn't an obvious replacement, so we'll just see more friction.
• Menu

  kelnos
  Looking at the graphs in the article, I don't think the overall picture supports the headline...
• Menu

  jandrewrogers
  I think the more interesting story is the long-term decline in the quality of virtually all sovereign debt. Many things are anchored to the assumption that high-quality sovereign debt is widely available.
• thehumanmeat
  The article couldn't be less true. Treasuries are the deepest and most liquid market by far. Foreign CBs hold them so that they can liquidate them when it becomes hard to find dollars. Why else do foreign CBs want to constantly open up swap lines to us when they are hurting?
• anon
  undefined
• nephihaha
  There seems to be a strong attempt to unseat the USA and the dollar right now. BRICS has tried to, China and Russia would love to and it looks like the EU may follow suit.The question as always is what to replace it with, and hopefully not something worse.
• octoberfranklin
  Treasuries Have Become Badly Unappetizing for Foreign Central Banks & Governments"Badly" is used to modify participial adjectives ("written", "organized"), not plain property adjectives like "unappetizing".But seeing Wolf Street on HN brightened my day.
• Menu

  csomar
  The issue (real issue?) is that it’s unclear whether these governments reduced their holdings or switched them to these opaque structures (tether can be considered one). The idea is, it would be hard for the US to untangle true ownership. I wonder if UBO was getting undone blue or red because it’s a real threat for such a system but the US needs this “second” lifeline.
• general_reveal
  We’re headed for war.They are bracing us for Taiwan situation where a standoff will probably lead to China making an aggressive financial move.Cheers :)
• Menu

  paulsutter
  I was dismissive when I saw the title, but they have real statistics: foreign holdings are at 2012 levels while total treasuries outstanding are 3x larger.
• Menu

  feverzsj
  Thanks, Trump.
• Menu

  llmslave
  US policy:1. print money2. suppress wages by shipping in cheap labor3. reassure the population you arent doing the above
• Menu

  reenorap
  Yes, that's called Quantitative Easing after the Global Financial Crisis. The peak in the graph was 2008 after which the US issues a shit ton of debt which was bought by the Fed. China used to be the biggest holder of US Treasuries but now it's the Federal Reserve and Japan.But the idea that you look at that graph as say it's "unappetizing" is dumb. Most foreign governments besides China have INCREASED their UST holdings. The only reason why the % is dropping is because of the massive amount bought by the Fed which messed up the %.
• Menu

  lvl256
  I think RoW is trying to send a message to certain US constituents.Edit: so much hate for something so benign.