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It'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?
by disgruntledphd2 1y ago
It'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.