According to the Securities Industry and Financial Markets Association, $9.2 trillion of the US National debt is owned by foreign governments. What if foreign governments decided to sell a good portion of this debt? Is it out of the question that we could see a coordinated attack by foreign governments on the US treasuries market in the future?

If this were to happen it could collapse the US financial system. Yields would spike, financial institutions would fail, and we’d see a massive liquidity wave from the government in an attempt to hold things together/restore treasury demand. Just something to think about.

#debt #usa #treasuries