Hi guys, As I understand it, China is the largest holder of U.S. debt and Japan is 2nd. Japan is already starting to reduce its treasury purchases. If China sells off U.S. treasuries that means the yields will rise and companies across the country will be less inclined to tacking on more debt. This comes at a time when the market is already extremely leveraged AND when the fed’s fund rate is increasing. This will cause cash to dry up in U.S. equities which will slaughter the stock market due to the deleveraging....I’m really not trying to be a contrarian, I’m just wondering if anybody shares this same view? Thanks for the read!
Submitted April 08, 2018 at 09:43AM by ajgbaby https://ift.tt/2GLBeli
