Talk in Japan Shakes Dollar And Treasuries

This is not good. South Korea has said that they are going to start ‘diversifying’ from their reliance on the American dollar and now Japan? It does not look good for the US economy when the foreign governments that basically fund our governmet are jumping ship

China, Japan, Hong Kong, South Korea and Taiwan together hold The New York Times > Business >56 percent of the Treasury securities owned by foreigners
. Many of those securities are held by their central banks. So any significant shift of their reserves out of dollars could spell trouble for both the American currency and the bond market.