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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: gregor_us who wrote (63900)6/16/2006 11:09:42 AM
From: russwinter  Read Replies (1) | Respond to of 110194
 
I wonder at what point the US is locked into a debt trap with this foreign debt? This chart shows foreign ownership of just US Treasuries, the current percentage is 50%.
idorfman.com

If we add the big recent binge in agencies ($509 billion just FCBs), we can see that more and more debt service payments are going out of the US in a giant sucking sound. 10 years ago this would have represented transfers within the US economy itself. In 2006, 4.8% of all US tax receipts goes to foreigners just to pay debt service (about $65 billion to foreigners) on Treasuries.