Influence flows away Foreign ownership of America’s debt erodes the Fed’s control over market interest rates. For more video content from The Economist visit our website: http://econ.st/1dI2qN1.

bored with a camera.
Video Rating: 4 / 5

Categories: Prepaid Legal Q & A

8 Responses so far.

  1. Jesse Maurais says:

    The main claim of this video that “foreign ownership of America’s debt
    erodes the Fed’s control over market interest rates” doesn’t follow from
    the information presented here. A central bank’s ability to buy government
    bonds is not changed because of the one who is selling it. The Fed can
    purchase bonds that Japan chooses to sell just as easily as it can purchase
    them from an American investment bank like JPMorgan or even an individual
    investor. The only thing that the Fed doesn’t control is the issuance of
    bonds. Only the US congress can create its own debt. ?

  2. Pic Pak says:

    Under Clinton..and correct me if I am wrong, the foreign holdings of
    american capital was higher. I don’t see the point here. America has levied
    more debt…so more people hold it… in what looks like proportions equal
    to the gross amount. The currency exchange can account for an enormous
    amount of that…but thats linked directly to commodities….I think
    standard of living is the most valuable measure…in which case Japan is
    still winning despite the fact that they are the most indebted.

  3. EZE V says:

    about being lazy…..TITLE PLEASE!

  4. Sibyl Vane says:

    I really don’t understand this. 2006: Fed and US banks owns c. 3 trillion,
    foreigners c. 2,8 trillion. The speaker says that “most was own by US”.
    Well, 3 trillion to 5.8 trillions is 52% of total debt. Now, c. 6.1
    trillion is owned by US institutions and total debt is 11.9. I.e. 51.3%.
    Yes, foreigners has increased their share of US debt by, if generous, 1%.
    That’s not very much. Of course in total value of worthless US bonds their
    increase is tremendous but that’s not the topic of this clip.

  5. chaugoo says:

    Damn obama

  6. Walter Asencio says:

    The collections department!

  7. Eva Ianus says:

    lol, this is awesome XD

  8. Angelface112681 says:

    i work at citigroup in their collections dept and this is so hilarious…
    almost true..

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