Newmark’s Door explores the question of who will buy America’s Treasury securities and comes up with three potential solutions via Seeking Alpha …
As China throttles way back on its purchase of US debt, America will have three choices –
1. Borrow and spend less
2. Raise taxes tremendously or
3. Print money.
Based on what we have seen so far, it will be some of number 2 and a lot of number 3.
As the graph of the 30 year Treasury bond shows, rates have started to move up. I suspect this is only the very early stages of this bubble bursting. I hope I’m wrong but how obvious can a bubble be?
