The US Government has Public debt, this is an analysis of the holdings (US$)
June 2005 Total 4,528 Bn. Foreign owned 41%
June 2006 Total4,797 Bn. Foreign owned 44%
December 2006 Total 4,901, Foreign owned 45%
Now what would happen if the Fed decided to default / delay on redemption of some / all of this debt and simply roll over the debts ?
The chart shows the steady 15% declien over the last 12 months of the US$ against the Euro....see Sept 2002 remarks by that master of misunderstatement Alan Greenspan..
City thriving outwith euro, says Greenspan"Smatarses will point out the US$ has ben here before, but please notice the strentgthening US$ coming up into the Presidential Elections, from which point is has relentlessly nosedived ... and it needs an irredentist optimist to see any change .. unles Mr Bernanke and his plas put up interest right REAL SOON NOW
Canadian Spectator alerted us to Economy in Crisis about foreign debt levels.
See also Trade Deficit sets a new Record (5/3/07)