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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: The Wharf who wrote (21777)	10/28/2004 6:17:48 PM
From: sea_urchin	Respond to of 81050

Darleen > this assumes that the US is tied to China by the peg she is not China is tied to the US but the US is not tied to China I'm not sure. I understand that foreigners own half of US debt and that China owns a good piece of that (although I can't find out exactly how much). independent-media.tv >>Data showing foreigners own half the U.S. debt has raised concerns about a possible tipping point for America's reliance on foreign capital, though the U.S. Treasury Department sees little risk from the holdings. A graph in a Treasury Department report this week on borrowing needs showed foreign holdings made up 50 percent of total privately held U.S. public debt, which excludes Federal Reserve holdings, as of May 31. Foreign holdings accounted for just 20 percent of U.S. debt in 1993 but they have swelled in recent years as Asian banks loaded up on U.S. Treasuries, seeking to depress their currencies against the dollar to boost exports.<< I also know that foreigners buy one and a half billion worth of US debt every day to pay for excess of imports over imports and thus keep the US running. robertreich.org >>Behind the falling dollar is this simple reality. America is spending like mad and going deep into debt. Personal debt is at record levels. The federal government is awash in debt, and that debt is growing. Our trade deficit with the rest of the world is also huge, and growing. Just to keep the dollar steady would require that foreigners buy 1 and a half billion dollars every day << Thus I assumed that if China bought fewer dollar instruments (because of increased purchases of Chinese debt) it would be reflected by either a fall in the value of the dollar and/or a rise in US interest rates.