SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: LLCF who wrote (22354)11/24/2004 9:41:10 AM
From: Kailash  Read Replies (3) of 110194
 
Andy Xie makes good point, though, that if Asian banks start selling treasuries, the Fed may be forced to raise interest rates. Since we rely on foreigners to finance our consumption, they have the power to set the interest.

Devaluing your currency when nearly half the nation's debt is to foreigners shifts the cost of that debt abroad. It is clearly in our creditors' interest that US interest rates rise and thus help shore up the value of the dollar.

I don't fully understand what the Fed can do other than raise interest rates if buyers stay away -- and we have a lot of signs that this is happening, with one block of buyers after the other. What are their alternatives?

K
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News