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MacroVoices #294 Luke Gromen: The U.S. Government Cannot Afford Secular Inflation

Macro Voices

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Are Foreigners Not Buying Our Treasuries Anymore?

We ran bounds of payments, ficits, twin deficits, and foreigners financed us. They're not buying treasuries any more; they are basically buying our stocks. So we are effectively selling corporate america and an American real estate to the chinese to finance us government spending. And that dynamic is as when twin deficit nations lose their foreign financing, inevitably the central bank begins financing em. It'll get to a certain point and it'll be fed to the rescue as usual.

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