what do you guys think the strength of the U.S. dollar will look like by the end of the year?
http://blogs.wsj.com/economics/2014/10/17/u-s-debt-held-by-foreigners-hits-record-6-07-trillion/
Saturday, October 18, 2014
"U.S. Debt Held by Foreigners Hits Record $6.07 Trillion"
Foreign holding of U.S. Treasury securities hit a record high $6.07 trillion in August, which is up $70 billion from July. This means the U.S. showed signs of gaining steam. China, Japan, and Belgium were some of the top three lenders to the United States. According to the U.S. Treasury bought around $135 billion in foreign currencies to keep the value of the yuan down. Foreign holding are expiated to continue to grow as seen by the steady strengthening of the dollar and plummeting yield bonds. As the U.S. economy is gaining steam, the value of the dollar is increasing.
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We have to somehow prioritize paying back foreign debt and make it harder for foreigners to consume American bonds, so if foreigners want American safety then they will have to stockpile American money and use them on purchases and/or investments in American securities.
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