But it's ok to allow other countries to buy the Fed's immense debt...hmmm...
Originally Posted by Cherish
I don't think that's okay, either.
Originally Posted by tantrum
So what would you have the Fed do?

Foreign holdings of U.S. Treasury securities now total $1.75 trillion. This accounts for approximately 41% of debt owed by the public. Some examples of foreign holdings include:

Japan $668 billion
China $217 billion
Caribbean Banking Centers $72 billion
OPEC Nations $48 billion

Foreign holdings of U.S. debt has increased $740 billion from January 2001 through May 2004. Examples of foreign holdings increased during that period include:

Japan + $356 billion
China + $116 billion
Caribbean Banking Centers + $41 billion
In fact, 70% of the 2003 federal deficit was borrowed from foreign investors.