The number of Americans who own bonds over the first foreign institution
power about 10 years ago, the United States because of the deficit, "the rapid expansion of" the constant issuing of government bonds, many foreign governments eager immediately bought a large number of such bonds, and became the major "creditors." However, the U.S. Treasury Department released statistics show that during the first half of this year, and foreign governments have begun to sell holdings of U.S. government bonds, at the same time, Americans become the biggest buyer of these bonds.
"New York Times" that the phenomenon will help to reduce the U.S. demand for external capital, and let interest rates remain relatively low. In 2008, before the outbreak of the financial crisis, few Americans are willing to buy the White House issued "bills." Now, with other investment losses for everyone, more and more Americans began to buy government bonds way to make money to achieve their own hands, "increasing the value."
2007 fiscal year, the United States issued a total of 237 billion U.S. dollars debt, of which 81% were bought by other central banks. Most of the rest divided up by foreign private investors, companies and individuals to remain in the hands of U.S. bonds, but 13 billion U.S. dollars. The first 6 months of this year, foreign holdings of U.S. government bonds to reduce the number of 100 million. However, buyers from overseas, still controls 46% of U.S. government bonds.
Week 4 (20), the Fed bought a total of 3.609 billion U.S. dollars of U.S. treasury bonds in order to support the U.S. economic recovery process. Analysts pointed out that in the United States is now almost a "zero rate" of the situation, the White House each year to pay interest on the national debt should not exceed 3.5% of GDP, or U.S. federal government can not afford. Reported that a healthy economy, the total debt should average about half of GDP.
widely believed, despite the U.S. government to increase the national debt by increasing the efficiency of government investment is very low, but contain high unemployment and economic recovery has some "positive role." In addition, the 2007 Nobel Prize winner Roger B. Myerson pointed out that because the American people do not want inflation, so the short term the U.S. federal government will not let the dollar depreciate significantly in order to further dampen the economic recovery process in the United States. (High Yi Jun)
