Well as the talking heads explained on the financial and political shows the real story coming out of Japan is they are out of the business of buying US debt. This debt was estimated to be $898 billion in February 2011. China is the largest holder of US debt at $1160 billion. Japan was purchasing $6.4 billion in debt per month while China has actually been reducing it’s exposure to the dollar selling $4 billion worth of debt between November and December of 2010.
What was gradually happening, the collapse in the bond market will accelerate. With China limiting their exposure and reducing their holding of US debt and Japan preoccupied with tsunami relief efforts and rebuilding the outlook for the dollar just got a lot dimmer.
The end of Japanese purchases of US debt for the foreseeable future
The next largest purchaser of US bonds is England with $272 billion worth. It is worth noting Great Britain did purchase $29.6 billion worth of securities from November to December of 2010. So now we look to the British to bail us out? Last time I checked the Brits owed almost as much as the US in debt as a percent of their GDP.
Hope and change. More like Cloward and Piven. Bill Clinton was smart enough to reverse himself. Our affirmative action idiot is out playing golf. I know now what it must have been like to be a dust bowl farmer with a crippled leftist elitist pig in the White House in 1935. No hope and a slow steady march towards world war. We are truly paying the price political correctness and there is no end in sight.
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