Money from overseas is pouring into the US capital markets, which foreign investors regard as a haven in a world that’s increasingly unsafe for them. Their mantra is “TINAC: There is no alternative country!”
The US Treasury International Capital System (TICS) reported on Friday that private net capital inflows totaled $1.5 trillion over the past 12 months through July, near recent record inflows (chart below).
Over this same period, foreigners’ net purchases of US bonds totaled $880.4 billion, while their net equity purchases were -$248.2 billion. The bond purchases included $634.5 billion in US Treasuries, $121.0 billion in agency bonds, and $125.0 in corporate bonds. (See our Treasury International Capital System.)