The fact that US Treasuries are in demand is a GOOD thing. It means that the world has confidence in the greenback, at least for now. It means that we as a country can live in denial just a little while longer, pretending that we don’t have a debt problem.
Having a large percentage of US debt held by foreigners actually starts to become more of a problem when those foreigners start changing their mind in droves and our access to cheap money dries up. That’s when we will suddenly find our back to the wall and realize that our situation is not all that dissimilar from what we are seeing in Spain and Greece. I discussed this and more with Neil Cavuto and the Fox Business All Stars.
Monica Mehta 