Quote:
Originally Posted by Baraka_Guru
Looking at T-bills, apparently 25% are held by foreign governments, which is double what it was in 1988. Is this going to put more of the U.S. public debt in foreign hands?
It seems to me that as time goes on, the U.S. continues to cede an increasing amount of control over its economy to foreign powers via the unabated increasing of public debt.
When will this stop? |
Good question. I wonder if there is a threshold (theoretical or practical) in which the percentage of foreign holdings of our t-bills becomes a national security issue. There has to be some line where our economy becomes very vulnerable and beholden to a foreign interest.
-----Added 17/9/2008 at 04 : 35 : 23-----
Quote:
Originally Posted by Baraka_Guru
Interesting indeed, roachboy.
I find it disquieting that people aren't more focused on the bigger dangers of this issue. Most people look at the bailout figures and get angry at big business. How soon they forget that such money is absorbed by the banks and the bill for it is being held by someone else, much of it quite possibly in Asia. The more foreign bills being swept up, the more control they have over American economic policy. The threat of dumping (i.e. cashing in) T-bills is enough to get someone's attention, especially when you figure that there's $1 trillion dollars' worth between Japan and China alone.
But here we're talking about foreign banking absorbing U.S. banking. Interesting. I wonder how this will play out globally as things continue to shake up.
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I think alot of this stuff is over the average persons head. It is complex and alot to absorb and understand. Since the media knows this they probably avoid it or just reduce to panic headlines. Heck I must admit, the few articles I've seen I have given just a perfunctory glance in favor of some other story or article until lately when it was more of a presence in general news.
So yes, people are mad, but they really don't know who or what to be mad at.
-----Added 17/9/2008 at 04 : 36 : 33-----
Quote:
Originally Posted by Tully Mars
Probably. Then Goldman Sachs and Morgan Stanley. Then?
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Good lord, I don't know. Do you think Morgan Stanley and Goldman Sachs could be next?
I do think CitiCorp/Group could be next.
Hopefully it won't be an endless fall of dominoes.