What if foreigners sell Treasuries? Another myth exploded.

For a long time we’ve heard all the “America is broke, debt-doomsday, we're borrowing from the Chinese” crowd tell us that one day foreigners will start dumping their holdings of Treasuries and interest rates in the US will spike to Greek-like levels.

Well, guess what?

Since August 24th of this year, foreigners have unloaded an unprecedented $100 BILLION of Treasury holdings and INTEREST RATES WENT DOWN!!!!!!!!!!!!!!!!!!!!!!

August 24, foreign custodial holdings of US Treasury securities: $3.49 trillion.
Rate on the 10year Treasury: 2.30%

Nov 2, foreign custodial holdings of US Treasury securities: $3.39 trillion. Rate on the 10 year Treasury: 1.98%

Another myth exploded.