Anytime you look at a chart and see a dramatic move such as this, it’s important to take notice and dig deeper for implications.
clipped from www.financialsense.com
Below you see the big picture of all cross-border flows in May as published by the U.S. Treasury. It shows both foreign investment in the U.S. and U.S. investment abroad. It includes Treasuries, agencies, corporate bonds, equities, and short-term instruments like T-bills. Foreigners bought a lot of T-bills when the credit crisis became acute.

http://www.caseyresearch.com/kkcImages/1247865445-ForeignersHaveSlowedInvestmentsinUS.jpg

http://www.caseyresearch.com/kkcImages/1247865445-Untitled-4.jpg
  blog it

2 Responses to “Foreigners Anti American-Economy”

  1. da_beast Says:

    I think it's important to understand this on a bigger picture. It's the big dependancy of the US on foreign money that keeps that charts moving – spending par excellence. On the other side, especially China and other big export nations need the US to do exactly that – spending. So they keep "buying US debt". It's kind of a vicious circle – and no "anti-american" economy by anyone. However, if China starts to have a strong domestic market (a consuming, not saving one), foreign investments in US debt could decline heavily).

    just my 2 pips, though.

  2. Johan Says:

    Great blog really!

Leave a Reply

You must be logged in to post a comment.