{"id":1222,"date":"2004-10-19T12:10:26","date_gmt":"2004-10-19T16:10:26","guid":{"rendered":"http:\/\/www.brianarner.com\/weblog\/wordpress\/2004\/10\/could_the_foreign_well_run_dry\/"},"modified":"2004-10-19T12:10:26","modified_gmt":"2004-10-19T16:10:26","slug":"could_the_foreign_well_run_dry","status":"publish","type":"post","link":"http:\/\/www.brianarner.com\/weblog\/2004\/10\/could_the_foreign_well_run_dry\/","title":{"rendered":"Could The Foreign Well Run Dry?"},"content":{"rendered":"<p>Despite record government and foreign trade deficits, America has not suffered severe consequences because foreign investors continue to pump money in.  What if <a title=\"Bearish on Uncle Sam?\" href=\"http:\/\/www.washingtonpost.com\/wp-dyn\/articles\/A43402-2004Oct18.html\">this market softens<\/a>?<\/p>\n<blockquote><p>But a rash of new data, including Treasury Department figures released yesterday showing a net sell-off by foreigners of U.S. bonds in August, has stoked debate over whether overseas investors &#8212; private individuals, institutions and government central banks &#8212; are growing dangerously bearish on the U.S. economy.<br \/>\n. . .<br \/>\nIn August, foreign private investors actually sold $4.4 billion more in Treasury bonds and notes than they bought that month, the Treasury Department said yesterday &#8212; the first time in a year that net foreign purchases were negative. That followed a 20 percent decline in July that shrunk net foreign purchases to $18.3 billion.<br \/>\nBond purchases by foreign central banks also dropped sharply in July, falling 76 percent, to $4.1 billion. A rebound in August brought them back to $19.1 billion. The recovery was timely: Without it, the dollar may have taken a serious hit, said Ashraf Laidi, chief currency analyst at MG Financial Group in New York, who headlined yesterday&#8217;s client newsletter, &#8220;Foreign Central Banks Save Dollar From Disaster.&#8221;<br \/>\nForeign purchases of stocks are off as well, going from net purchases of $9.7 billion in July to a net sell-off of $2.1 billion in August. Over the past 12 months, private foreign investors have purchased a net of $17 billion in U.S. stocks, compared with $30 billion in the 12 months before that.<\/p><\/blockquote>\n<p>Higher interest rates, a falling dollar&#8211;these economic pitfalls loom on the horizon if short-term bump becomes a long-term trend.<\/p>\n","protected":false},"excerpt":{"rendered":"<a href=\"http:\/\/www.brianarner.com\/weblog\/2004\/10\/could_the_foreign_well_run_dry\/\" rel=\"bookmark\" title=\"Permalink to Could The Foreign Well Run Dry?\"><p>Despite record government and foreign trade deficits, America has not suffered severe consequences because foreign investors continue to pump money in. What if this market softens? But a rash of new data, including Treasury Department figures released yesterday showing a net sell-off by foreigners of U.S. bonds in August, has stoked debate over whether overseas [&hellip;]<\/p>\n<\/a>","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-1222","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-uncategorized","7":"h-entry","8":"hentry"},"_links":{"self":[{"href":"http:\/\/www.brianarner.com\/weblog\/wp-json\/wp\/v2\/posts\/1222","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.brianarner.com\/weblog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.brianarner.com\/weblog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.brianarner.com\/weblog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.brianarner.com\/weblog\/wp-json\/wp\/v2\/comments?post=1222"}],"version-history":[{"count":0,"href":"http:\/\/www.brianarner.com\/weblog\/wp-json\/wp\/v2\/posts\/1222\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.brianarner.com\/weblog\/wp-json\/wp\/v2\/media?parent=1222"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.brianarner.com\/weblog\/wp-json\/wp\/v2\/categories?post=1222"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.brianarner.com\/weblog\/wp-json\/wp\/v2\/tags?post=1222"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}