Foreigners have been scaling back their investments in U.S. assets since the summer of 2006. Increasingly, corporate bonds and stocks have borne the brunt of pressure.
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Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
"When the Fed is the bartender everybody drinks until they fall down." —Paul McCulley
Retail Sales in Jan rose .4% headline m/o/m, .7% ex auto's, .6% ex auto's and gasoline and .7% at the core. The headline figure was less than expected while the rest were slightly better. But, with respect to non headline sales, because Dec figures were revised lower, taking the two months together were about in line with forecasts overall. Sales rose in electronics, building materials, food/beverages, clothing, sporting goods, dept stores and restaurant/bars and fell interestingly for online retailers, health/personal care, furniture and motor vehicle/parts. Bottom line, headline sales were below expectations due to the greater than expected fall m/o/m...
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August 17th, 2009 at 1:40 pm
Err… OK, and… by how much has their USD government bond investments increased?
As much as hopelessly wrong commenters such as Peter Schiff are expecting hyper-inflation, the odds are that the USD will be the last man standing if there is carnage on the currency front.
August 18th, 2009 at 8:39 am
Agreed Denis…
Hyperinflation will not become a phenomenon until the full debt deleveraging phenomenon has run it’s course.
We are presently witnessing that by way of the lack of velocity in money nothwitstanding QE.
August 18th, 2009 at 9:44 am
[...] This is a little scary (foreign purchases of US stocks and bonds): http://www.ritholtz.com/blog/2009/08/foreigners-cumulative-12-month-net-purchases-sales-of-us-assets… Headlines Yesterday’s action was set in Asia [...]