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The USA is not, in percentage of their economy, the largest debtor nation. The dollar have a special status, because of the importance (economic and geopolitic)
by RobertoG 6y ago
The USA is not, in percentage of their economy, the largest debtor nation. The dollar have a special status, because of the importance (economic and geopolitic) of the USA, but that's not what explain the untroubled existence of a big public debt.
If that theory was true how they explain Japan?
- jcbrand 6y ago37% of USA debt is held by foreigners, while it's just about 9% in Japan.
- RobertoG 6y agoThere is not reason why the Federal Reserve can't do the same that the Bank of Japan if they choose so.
- thoughtstheseus 6y agoSure but the Fed should not be buying REITS and equity markets. I don’t think people realize how damaging it would be to the country long-term. Financial Engineering can smooth economic cycles but real forces determine LT growth rates. The Fed knows this and has been asking for fiscal support.