The World Still Loves the American Economy
\n\n“The World Economy Is Becoming Wary of the U.S.,” the New York Times announced this week.
\n\nThe subhead pins the blame directly on President Trump: “America’s position of global economic stability is starting to look shakier as the Trump administration piles on debt and doubles down on sanctions.”
\n\n“Global investors are balking at U.S. bonds. Talk of the dollar’s dwindling power is getting louder. Foreign governments are hauling their gold out of American vaults,” the Times trumpets.
\n\nThis sounds ominous until you examine what the money is actually doing. Much of the supposed flight from America turns out to involve buying other American assets, adjusting to American trade policy, or acknowledging that no other country offers a credible replacement for the dollar.
\n\nStart with the claim that capital is “starting to seek alternative destinations.” We don’t want to be rude about this, but the Times is completely wrong. According to Treasury data released Wednesday, foreigners purchased a net $1.75 trillion of long-term American securities over the 12 months through July. That’s a significant increase from the $1.47 trillion in the preceding 12 months. Even more importantly, it is more than double the roughly…
Original source: https://www.breitbart.com/economy/
