Countries Selling Off US Bonds at aQuicker Pace - Why

[JohnyMac]

I have been reading that many countries around the globe are selling off US Bonds at an alarming rate. Here is an article outlining the top US Bond holders and what they are doing.

I wonder why?

[Well-Prepared Witch]

Well, Saudi Arabia is dropping our bonds because they're quickly going broke.  They're actually issuing their own bonds this year or early next if they're not already on offer.  It's a huge offering, too.

China's doing it because they're also really unstable right now.  Their currency has been dropping and they're trying to stabalize it against the dollar.

This is definitely something to keep an eye on, but is not yet what I'd call a red flag.  Maybe a slightly pink-tinged flag, but nothing to panic over.

[JohnyMac]

True Wellie that the reason for the sell off is not  however, if it continues and spreads to other countries it will be a concern. Worth monitoring.

[Kbop]

  now add to that the fear of the typical American election year recession - The US of A's current 0% interest rates and QE...  There is no room for the Fed to adjust anymore. (do i hear the sound of feet heading for the doors?)
Japan is still in a recession.
China is moving to a gold based exchange (BRICS) maybe?
Saudi Arabia trying to strangle oil competition and hemorrhaging capital.  The current king is having to deal with a regional war by itself/himself for the first time.
Russia has double digit inflation and the Ruble is rubble.
it keeps going.
US bonds are a symptom.