Theories

Foreign Holders of US Treasuries Can Cause Damage If They Sell

Some investors postulate that if large foreign holders of US Treasuries liquidate their holdings quickly, they could drive US interest rates up and crash the economy.

More About Foreign Holders of US Treasuries Can Cause Damage If They Sell

Predictions Why This Wont Happen

  • The US president of Treasury could free the foreign holders account and stop sales
  • The US could require large banks or the FED to purchase the treasuries instead