Quote:
Originally Posted by aohige
America on the other hand.... owes a lot of people money. And I don't mean the Americans.  |
Foreign holdings constituted $5.7 trillion as of April, 2013, or about a third of our current total debt of $17 trillion.
One reason is that foreign banks and governments prefer to hold US debt over that of other countries. In fact, given the negative real rates currently attached to US debt securities, foreign countries are effectively paying the US to hold their money for them. This has been true for some time.