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The Fallout of Countries Dumping U.S. Bonds USMR Market Insights

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Oct 22, 2018

Many of the biggest forces in the global economy, including China and Russia, are selling off their U.S. Treasury Bonds. This could prove dangerous for anyone whose portfolio is solely made up of paper assets, like stocks and bonds. Don't let your future be a victim of these global shifts.

The Fallout of Countries Dumping U.S. Bonds- Video Transcription

Coy Wells:               00:00
Several months ago, we talk specifically about why countries were dumping U.S. Treasury bonds and U.S. debt as a whole. As we continued our process of reviewing what countries were continuing to sell off U.S. Treasury bonds and who is currently the biggest buyer. According to the Treasury's international capital report, the flow currently shows that Brazil in August is the biggest buyer, followed by Ireland and France. Even though these are small countries, the buying does not match the amount that's currently being sold. The concern is now that the bigger countries are continuing to dump U.S. Treasuries. Japan our ally, Russia, and China have continued to reduce U.S. Treasury holdings for the last 90 days. Japan has also gone from a regular buyer to a regular seller, putting their holdings back to the lowest holding since 2011. What does all this mean? It means that the global reduction of U.S. currency continues. And according to the International Monetary Fund, the share of national currencies globally in the central banks and the reserves have continued to decline to about 62 percent in the second quarter of this year.
Coy Wells:               01:01
The sell off of Treasuries are contributed by sanctions and tariffs continuing to be the biggest contributor to the sell offs. If countries continue to reduce the use of the currency or U.S. currency, the purchase of our debt, which is done in U.S. Treasury bonds. The fallout is continuing to be the U.S. Dollar currently here in the United States. This information is also crucial for anyone that has money that's sitting in a retirement account or someone who is a young person that is continuing to work to try to strive to build up their retirement account. And we've talked week in, week out, about the U.S. economy and how fragile it really is. The Treasury Department in 2013 specifically warned about the sell off of U.S. Treasury bonds specifically in 2013. The continuation of that process is happening and it's getting bigger and it's getting bigger and it's getting bigger. To get your own copy of the brand new report ‘the crisis ahead, the three mistakes that could trigger the next financial crisis‘. Click on the link below for instant access for a free e-book or call the number and we'll get you a physical copy out right away. Thank you for tuning in to U.S. Money Reserves Market Insights.
 

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