This is certainly something to make you go hmmmm. Today’s infographic from the Virtual Capitalist illustrates how America owes foreign investors of its national debt $7.3 trillion – all in the form of Treasury securities. Interestingly, they point out that central banks often use them for foreign exchange reserves and private investors flock to them during flights to safety thanks to their perceived low default risk. Indeed….. Stay safe and have a Happy Friday!!
“…foreign investors may buy Treasuries as a store of value. They are often used as collateral during certain international trade transactions, or countries can use them to help manage exchange rate policy…”