Here is an up to date chart of “Who is buying Treasuries”. The rising blue line at the bottom are Federal Reserve Banks. The falling red line just above it are foreign investors. The green line up high are private investors. When the blue line crosses the red line then the green line will drop. US Treasuries will plummet. Yields will shoot straight up forming a hockey stick on the chart. Gold, silver, oil and other commodities will skyrocket. All talk of MMT will end. A new chapter of Extraordinary Popular Delusions and The Madness of Crowds will be written.
The blue line would likely cross the red line if any version of Biden’s 6 Trillion dollar “infrastructure” bill is passed. While Fed officials talk about curbing Treasury purchases, what they actually do is determined by Congress and the President. If a multitrillion dollar appropriations bill is passed, the Fed will have no choice but to buy more Treasuries. When US banks become the second largest holders, individuals will finally catch on and sell, sell, sell.
There is always a chance that a dollar collapse could materialize overnight, if either or both President Putin of Russia, or President Xi of China announced plans to liquidate US debt entirely.
