Foreign Investors Snap Up U.S. Debt

This article may be good news for us....in the short term. (Cue the Debbie Downer horn...wah!-wah!) But it may be bad news...in the long term.

Foreign investors scooped a near record amount of U.S. debt in August and sharply increased their holdings of Treasury bonds, according to the latest Treasury International Capital report.

Since the Fed’s policy meeting in September, investors have grown more confident that further easing, QE2, will be announced at the Fed’s next policy meeting in early November. In turn, the dollar has weakened sharply, particularly against the yen and a number of emerging market currencies.

Analysts say the prospect of QE2 should keep money flowing into US debt and the recent fall in the dollar should boost inflows as some countries intervene in the market and buy the US currency.

“The TIC data in the future will reflect strong foreign demand due to currency intervention,” said George Goncalves, head of interest rate strategy at Nomura Securities. “The question is where those funds are invested and I expect it will favour short-dated bills rather than longer-term maturities.”

See it here; http://www.ft.com/cms/s/0/62aaf4aa-dabf-11df-81b0-00144feabdc0.html

So why is it good news?...because it show that the rest of the world still wants to put its savings into the U.S.A. which means they have confidence that we are best suited to ride the storm out.

So why is it bad news?....because we are digging a bigger debt pile and owe more and more to foreigners and also those foreigners are buying short dated bills...meaning that we are going to have to refinance them all in the next 2-3 years.

It's quite possible that the Lord is keeping this whole Ponzi scheme from bursting because we are all waiting for the "fullness of the gentiles" to come in. Once that last person whose name is in the Lamb's book says, "Yes"....the Father could send the Son....and the finances of the world could come apart.