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Who finances America?
Topic: Economics 1:13 am EST, Nov  5, 2004

] Others agreed, but note that Bush and U.S. taxpayers may
] have a few years' breathing room. "Right now, we're
] floating along because the Japanese and Chinese are
] financing our debt by buying government bonds," said Mark
] Votruba, assistant professor of economics at Case Western
] Reserve University.
]
]
] "There's going to come a day when they're not going to do
] that. Then the only way to sell our debt will be to
] increase the interest that we pay on bonds, and that
] means all interest rates are going to go up," he said.
]
]
] But that might not happen for a few years, Votruba said.
] "If the dollar starts falling in value and we see any
] sort of change with the Chinese and Japanese not buying
] our bonds so we have trouble selling Treasury bonds, then
] there will have to be some kind of response. If it
] doesn't happen in the next four years, it'll happen soon
] after that. That's my prediction," he said.

Who finances America?



 
 
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