As the chart below vividly demonstrates, the traditional diagonal rise in foreign holdings of US paper has not only plateau, but it is in fact declining: a first in the history of the post-globalization world.
Well as of today's H.4.1 update, the outflow has increased by yet another $8 billion to a new all time record of $85 billion, in 6 consecutive weeks, which is also tied for the longest consecutive period of outflows from the Fed's Custody account ever. This week's sale brings the total notional of Treasuries in the Custody account to just $2.66 trillion (down from a record $2.75 trillion) and the same as April of last year.
This zerohedge.com piece from yesterday was sent to me by West Virginia reader Elliot Simon. The graph is worth a quick look...and the link is here.