from King World News
This is the most important question as we head into 2020.
How Will It Ever Exit?
December 17 (King World News) – Peter Boockvar: Foreign selling of US notes and bonds continued in October by a net $16.7 billion. This brings the year to date selling to $99 billion with much driven by liquidations from the Chinese and Japanese. It was back in 2011 and 2012 when in each year foreigners bought over $400 billion worth. Thus, it is domestically where we are now financing our ever increasing budget deficits. The Fed now has also become a big part of the monetization process via its purchases of T-bills which also drives banks into buying notes. The Fed’s balance sheet is now $335 billion higher than it was in September at $4.095 Trillion.