Because it is. We bought it. On credit.
The dollar and the Treasury market, when it comes to safe havens, are going to be the Facebook of safe havens, because a lot of people wanted to buy Facebook on the IPO. They were really excited about it. They thought it was great. But once they owned it, and they took a look at what they owned, and they looked at the fundamentals, they realized it wasn’t so great. And they wanted to get out. The same thing is going to happen to people who are buying dollars, because they think it’s a safe haven from European debt.
America is more deeply in debt than Europe, and less likely to repay without resorting to massive money printing.
And if you think there’s going to be a lot of money printing, that is not a reason to want to own Treasuries or dollars. That is a reason to get as far away from the U.S. dollar and the Treasury market as you can.