The Dollar Is Getting on the Nerves of Foreign Central Banks

Foreign central banks holding of US treasuries at the Fed custody facility are dropping fast, almost $40 billion in one week. With $8.8 trillion in bonds averaging an eight year maturity, year to date market losses of about 15% and just $48 billion in capital, the Federal Reserve would definitely be in the solvent if it needed to mark two markets. Well, that's a bear trap. So because those countries are having a harder time as global, we just got an announcement this morning that global trade has slowed way, way down. And so paying back to those dollars is causing a world of pain.