Expatriated Dollars?

Foreign banks and investors were net sellers of U.S. securities in May, according to the latest report from the Treasury Department. The total decline measured -$19.8 billion. Lower levels of Treasury holdings by both Japan and Russia accounted for some of the drop. Interestingly, since the report is a net measure of inflow and outflow, we also saw a big increase in purchases of foreign securities by residents here in the U.S., which actually accounted for a healthy portion of the overall drop. Also of some significance, given their recent rhetoric about the questionable effect all our economic stimulus packages may have on the dollar’s value, was the contribution from China to the final totals. Here we see a large increase in their holdings of our assets. Apparently any concern Beijing harbors about the viability of our dollar isn’t cooking on the front burner there yet. Do the Chinese actually have more confidence in the future of America than we do?