U.S. Treasuries

The Tipping Point of Government Debt

From the Washington Times, tempting the tipping point: If governments continue to pile on more and more debt, when will they reach the tipping point? The Greeks appear to be close to the tipping point, and it is only a matter of time before other European countries, and eventually even the United States, begin their fiscal death spiral. The Greek government’s unwillingness to make the hard choices necessary to put…

Falling Demand for Long-Term U.S. Assets

The viability of our economy will be determined by the willingness of foreigners to hold our debt. Amidst talk that investors are seeking safety in treasuries, International demand for long-term assets keep falling. From Bloomberg: International demand for long-term U.S. financial assets weakened in May as investors sold the most Treasury notes and bonds in six months. Total net sales of long-term equities, notes and bonds were $19.8 billion in…