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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (2441)	11/19/2003 4:52:57 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 110194

yes, i saw those figures in CI. it is quite interesting that China has become a net seller of T's (i believe two out of the last three months) after buying furiously. as i mentioned, they have too much domestic capital demand to really do what Japan is doing. it will be interesting to see if Japan can "toe the line" all by its lonesome. i think not. also, not mentioned in CI i don't think: Germans have led the way in dumping US equities lately. Most of the Asian countries in 1997-1998 were in no danger of default either, again, there is NO WAY the US would have to default on sovereign debt. it doesn't matter if the Clownbuck fell to 1 JPY; they can just print whatever it takes. one must distinguish between fiat sovereign debt, which is considered free of default risk (though not other risks, such as value of USD! and term risk); and "highly rated" debt, which can, of course, become less "highly rated".