Foreigners cut Treasury stakes; rates could rise – washingtonpost.com.
The Wapo notes that the Japanese have overtaken the Chinese as the number one purchasers of American government debt.
Apparently we’ve gotten to 88 mph in the Delorean and the flux capacitor has taken us back to 1985…
h/t Ezra Klein
The real danger is that the lack of investors forces the Fed to raise interest rates to attract foreign investors which causes the portion of GDP paid to interest to crowd out other spending. Then the excrement will indeed hit the fan.
