We don't want your debt!

Above is a nice chart showing what I have talked about in previous posts about lack of foreign demand for US debt (unwillingness to loan us money). Even this chart looks a lot better than reality. In reality, this little bit of "demand" is where the Fed is paying foreigners in full for their worthless Fanni Mae and Freddie Mac holdings. Then they are supposed to use the money to buy our debt, which is better than the garbage they were holding.

Real demand is less than zero right now -- net selling.

To recap, the US government needs to borrow far, far, far more money than any government in history has ever tried to borrow in a year. US citizens want to lend a tiny bit; foreigners want to lend none. So that leaves the other 90% to sell. A lot of records for demand will have to be completely shattered to keep the federal government and economy going until summer. Have a good day!