Originally Posted by
Caf
You won't be the first person on this board to wrongly ignore every other reality because you can't get passed politics. The Fed and its handling of inflation and rates is undeniably the trigger for this recession. If you want to talk deficit spending which lead to inflation as the cause (this is your out bud), then you have to talk about every President since Clinton, even your dearly beloved. Then the conversation will go to the impossible task of landing a recovery from an economic recession/shock ('08, '20) without overheating the economy but also not losing capacity.
59% of global reserves are in USD. The next closest, the Euro, is 20% oh by the way those Euro reserves are down 11% versus the dollar since the start of the year. I'm not sure how familiar you are with FX trading but that means people are flocking to the dollar and leaving the Euro, the closest (195% gain away) currency to unseating the dollar. And yes we are in a butt ton in debt, meaning we are issuing an enormous amount of cash, and yet the value of that cash continues to rise. Not sure if you're into this kind of thing, but makes you think.
Why else might a foreign investor not be buying US Treasuries to the same degree. Spoiler alert, it's not repayment risk which does not exist in treasuries.