Are the chickens coming home to roost for the US Treasury? As Ryan McMaken noted in a recent Mises Wire article, the United States is in a debt spiral and there's no easy way out.
On top of all of this, the US Treasury is running out of buyers for its debt.
The Fed, which has always been a ready buyer of government debt with newly created money, is allowing its holdings of US Treasury securities to roll off its balance sheet.
Like the Fed, foreign governments such as China and Japan are also reducing their purchases of Treasurys, leaving the US with a smaller customer base for its debt.
Everybody's appetite for US government debt is running low, and that includes foreigners, the government's own money printer, and favored financial institutions.
Treasury yields skyrocket as the whole world loses confidence in the US government's ability to repay its debts.
The US government performs a "Soft default," similar to its actions in the 1930s and in 1971, in which the dollar is transformed in such a way as to rescue the government from its debt obligations.
https://mises.org/wire/us-treasury-runs-out-creditors-its-options-dwindle
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