0 sats \ 2 replies \ @gmd 18 Jul 2022 \ parent \ on: Foreign Holdings of US Treasuries Down 4.2% in 2022 bitcoin
Too dumb to understand the implications of this but it sounds bad...
The blue line is the expected interest payments that the US will need to make on its debt each year.
This projection doesn't take into consideration:
- the quickly rising interest rates we're seeing today, or
- a world where foreign governments are net sellers of US debt
Both of those could cause the blue lines to get exponentially bigger, leading to the US deficit spiralling out of control.
Currency devaluation seems like the most plausible way out.
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you and me both!
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