In a bank run, what people are panicked about isn’t quite that they may lose their money. At the core of it all, what they are really terrified of is that they might lose the value they have stored in the bank, in the form of money.
At this moment in time China has $1.2 trillion of stored value, on-deposit with “The Bank of the Dollar” in the form of Treasury bonds. Japan also $1.1 trillion of their hard-earned wealth on deposit in the same bank. The rest of the world has an additional $3.3 trillion combined on deposit with “The Bank of the Dollar”, as the total US Treasury debt outstanding that is held by foreign entities is a whopping $5.6 trillion.
I hate to break the news to you, but there is a run on this bank going on right now. Oh, it’s still quiet and there is nothing approaching panic just yet, but make no mistake- these countries are all attempting to get their stored value out of that bank before everyone else tries to do the same thing.
