November 13, 2003

In Asia We Trust

Looking at the Fed's latest numbers, I see its "custodial" holdings of bonds actually owned by foreign central banks have now passed the $1 trillion mark -- an increase of almost 25% since this time last year:

The Fed's own bond portfolio, by contrast, is worth less than $660 billion -- and the entire left-hand side of the balance sheet (net reserve credit) totals just $722 billion. If this keeps up, Uncle Sam is going to have to put a new motto on the dollar bill: "In Asia We Trust."

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Posted by Abe at November 13, 2003 04:49 PM