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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: TobagoJack who wrote (115595)1/16/2016 12:52:46 AM
From: Elroy Jetson3 Recommendations

Recommended By
ggersh
kidl
stsimon

  Read Replies (2) | Respond to of 219931
 
You imagine all US government debt is foreign owned, but wrong again.

Only 32% of US Treasury debt is held by foreign nationals, with an additional 2% held by Americans and American corporations in Caribbean banking centers.

The largest foreign holders of US Treasury debt are Japan and China each holding about 6.5% of the total, with Britain and the EU (listed as Belgium) combined holding another 6.5%, for a total of 19.5% of the US federal debt..

What's shocking is all oil exporters hold a massive 1.6% of US Treasury debt, which is large enough to cause a panic in your head, but not in the real world. This OPEC holding is roughly equal to the amount held by Ireland, or Switzerland, or Hong Kong. Most Petro-Dollars are invested in stocks and real estate, particularly London real estate.

The Fed can supply an unlimited number of US Dollars to meet Treasury redemptions as China continues to import massive quantities of food to make up for the serious shortfall due to the worst drought in 68 years.

Don't worry Jay, you and others in China will be able to continue eating, as the US and Brazil will continue to accept US Dollars in return for farm fresh food, and the wastepaper so highly prized in China.