The following article, from the Miles Franklin website was a real eye opener.
It tackles a range of issues, not least of which is the fact that foreigners are now purchasing less US government debt that during the dark days of 2008 when the GFC threatened to bring down the global financial system.
Foreigners have completely now abandoned the US government debt markets. The only time a foreigner appears on the books is when shady purchases are made from obscure countries who have little size or, like Belgium, are already up to their eye balls in debt.
China has now started selling US bonds at a fast clip. They were once the largest purchasers, then they went quiet for a year or two. Now they are selling down their $1.2 trillion pile of paper rubbish as fast as they can. Who buys? Why the US Fed of course.
The rest of the world knows the US is sitting on rotten debts and will never pay. Perhaps this is why China bought over 2,000 tonnes of gold last year. It was as good a swap as I’ve ever seen.
Here’s the link: http://blog.milesfranklin.com/the-death-knell-of-tapering
Side note: George Soros has just made a 1.2 billion dollar bet that the US stock market is going to crash soon.