Foreign Holdings of U.S. Debt

I know there are geo-political aspects to this issue, but on one level, I think the implications of foreign ownership vs. domestic are the same…..bondholders want to know the currency is safe and the interest will be paid. Otherwise, the interest we promise will need to increase, whether Grandma owns the bond, or the Bank of Japan.

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Posted by Philip Emmanuele, July 2012.

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