A while back, I posted a chart of the Custodial Holdings of Treasuries for Foreign Central Banks that revealed a sharp drop in the number held from over $3.021 trillion to near $2.855 trillion, or about $166 billion. At the time I mentioned it was rather remarkable and thus warranted monitoring.
Shortly after the number became public, we had the usual "end of the world" scenarios for the US Dollar as the perma-gold bull community began talking up their usual the "run on the Dollar has begun" thesis. Many were talking Russian dumping of US Treasuries as a move away from the Dollar that was going to snowball. Of course, implied in all this was talk of gold shooting to the moon again.
Well, here we are exactly 4 weeks after hitting the low point in those reported Treasury holdings and we are back to $2.972 trillion, not far off the all-time peak noted above and the largest number since January 30, 2014.
Apparently the run on the Dollar has not begun in earnest among foreign central banks. Here is the chart:
"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput
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