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Old 02-21-2006, 04:04 PM
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crazygutgut crazygutgut is offline
I wanted an egg-salad sandwich
 
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I am much more concerned about this...

from this
http://www.globalresearch.ca/articles/ENG407A.html

The largest buyers of US government debt have been the central banks of the Asia-Pacific. The central banks of Japan and China alone hold more than $1 trillion of US Treasury bonds as foreign currency reserves. Worldwide foreign central banks hold some $1.3 trillion of US government debt. If private debt is added, the United States is the world's largest debtor, with some $3.7 trillion in net foreign debt, as of the start of this year, likely well over $4 trillions by now. In 1980 when Ronald Reagan was elected the US was the world's creditor with a plus of $1 trillion.

Nations depending on the large US export market, recycle their trade surplus dollars back into buying US Treasury debt, to keep their currency fixed to the dollar. Because Japan and China and others continue to buy record sums of US debt, paying with their hard-earned trade dollars, US interest rates can remain far lower than otherwise. Were foreign buying of US bonds to reverse or even slow, the US Treasury would have to offer higher interest rates to lure investors to buy the debt. That would make interest rates on homes more expensive very fast. Millions of homeowners would face default. Prices would collapse in many regions, leading to higher unemployment.
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