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US Treasuries Have Become Unappetizing for Foreign Central Banks and Governments

152 points · 132 comments · iamnothere

  1. 1over137 · · focus · HN ↗
    US everything has become unappetizing for everyone outside the US.
    1. carefree-bob · · focus · HN ↗
      This is nonsense. The rest of the world holds 9.7 Trillion in Treasuries and this amount increased by $500 billion over the last year.

      So the opposite of this article is true. You can get all the data from the Z.1 release.

      Please don't take these types of flame bait articles seriously or try to spin up an entire world view based on them as you will end up not only directionally wrong, but believe in the exact opposite of reality.

      FYI, that $500B increase in treasury holdings is not the whole picture, there are also the agencies (housing mortage backed securities guaranteed by the govt) and foreign holdings of those also increased by $70 billion over the last year, and are about 1.5 Trillion.

      1. boricj · · focus · HN ↗
        It's not just about treasure bonds. The mood is shifting in Europe that, maybe, putting all the eggs in the USA basket is perhaps not that great of an idea.

        It's the vindication of Gaullism half a century after De Gaulle's death, the concept of strategic autonomy is getting traction in the rest of Europe. It's not that we can't be friends, but that we shouldn't let our future be gambled in the hands of Wisconsin voters every two years.

        1. rdm_blackhole · · focus · HN ↗
          > the concept of strategic autonomy is getting traction in the rest of Europe.

          I think you may have missed the part where Sweden just joined NATO recently. As long as the EU countries are in NATO which is de facto under American leadership, then there will be no strategic autonomy.

          Secondly, even if the mood is sour between the US and the EU currently, Germany, Poland and other small eastern states very much still like to have the US as backers if only just for the fact that there is no EU army.

          If the EU countries were leaving NATO to form their own military alliance, then I would agree with you but that hasn't happened and maybe never will.

          1. hvb2 · · focus · HN ↗
            > If the EU countries were leaving NATO to form their own military alliance, then I would agree with you but that hasn't happened and maybe never will.

            The whole point is that, in general, global cooperation has worked well in the last 80 years. Europe doesn't want that to change but the US didn't vote for this guy once, but twice. Fool me once, shame on me, fool me twice, shame on you.

            So Europe won't leave NATO, but it is pivoting to being more self sufficient. It's another area where the US is quickly spending the political capital it accumulated for decades.

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