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I think there are many smaller jurisdictions that are getting their shit together and might absorb demand - southeast Asia, Singapore obviously (but small), the
by whimsicalism 1y ago
I think there are many smaller jurisdictions that are getting their shit together and might absorb demand - southeast Asia, Singapore obviously (but small), the Gulf. Some subsets of the EU, particularly Eastern Europe.
Plus, even worse-run higher yield jurisdictions become more appealing as the US fails.
- disgruntledphd2 1y agoIt's more about volume than anything else. You or I could invest elsewhere but where do all the foreign holders of Treasuries and US stocks put their money?
- whimsicalism 1y agoYes, I understand your point very well. My point is two-fold, 1. that many small and stable jurisdictions can absorb excess capital even if there isn't a single stable player as large as the US, 2. it makes higher yield less stable jurisdictions more appealing on the margin. Ultimately, capital will flow away from the US if our fiscal stability is increasingly in question.