Friends + Interlocutors,

If Japan should stop buying U.S. Treasuries or start selling them, who would take up the slack? Japan Inc. holds more than $1 trillion. Then there is the big enchilada, China, which holds the second largest position at $759 billion to $1 trillion. 

If things get nasty in tariff negotiations, what happens if both Asian economic superpowers cut back on Treasuries?  This at a time when the USG needs to finance the biggest deficit in recorded history. 

Patrick

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