Executive Summary:
Like Blanche DuBois, the US Treasury has been dependent on the kindness of strangers, particularly foreign investors. Doomsters warn that they are losing their confidence in US Treasuries and in the US dollar. Yet, the Treasuries latest TICS data show that they remain strong buyers of US debt. In addition, they’ve bought a record amount of US equities over the past 12 months … Check out the accompanying chart collection.
Foreign Buyers I: Loading Up on US Treasuries & Equities
The phrase "I have always depended on the kindness of strangers" is a famous line from Tennessee Williams' play, A Streetcar Named Desire. It's spoken by the character Blanche DuBois in the final scene as a doctor and a nurse are leading her away. The line is often interpreted in various ways, including as an expression of Blanche's naivety, her reliance on fantasy and illusion, and her desperate need for acceptance and validation.
Similarly, Uncle Sam has increasingly relied on the kindness of strangers, i.e., foreign investors, to purchase US Treasuries, helping to finance the rapidly mounting debt of the US federal government. In recent years, Doomsayers, such as Ray Dalio, have warned that we
Big Tech earnings week is here! Stay ahead with MacroMicro’s Economic Calendar — track CPI, GDP, and key earnings like Apple & Google all in one place. Check it out »
