Much has been made at the usual sites about Foreign Central Banks supposedly not buying US Treasuries. One has to always take these claims with a good dose of skepticism.
Here is an updated chart of the Custodial Holdings of US Treasuries by Foreign Central Banks. As you can see, after plunging lower in March of this year ( remember this was the result - so we were confidently told of Russia selling its Treasuries which supposedly heralded the end of the Dollar), Treasury buying has picked back up considerably.
Treasury holdings at the beginning of this year were near $2.997 TRILLION. As of today, they are currently at 2.981 TRILLION. That is down $16 billion on the year thus far. Not much when all things are considered.
It is going to be most revealing when we finally get the updated Treasury International Capital flows data for the month of June ( we will get that in August, next month) so that we can get a look into how the Treasury Department moves the allocation of Treasury holdings to the source nation instead of the intermediary nation.
"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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