[Destro]

China and Saudi Arabia have us by the short hairs? Nah - they would never pull out of our economy as a threat.....

[CasearianDaoist]

It is just nonsense. Government securities are perfectly fungible and sold on an open market. The money has to be paid to any holder. This notion of "dumping" government securities is just nonsense - the seller would lose money and it would not effect payment at all from our point of view. If the security is a good investment people will buy if; if not, they will not.

The notion that foreigners are doing us some sort of "favor" or there is some sort of sinister cabal out there is just plain silly.

If we can keep this sort of growth for a decade and put the Fed's rates back up to were they were in the 1990's people will be scrambling for dollars and dollar back securities. This article also seems to be confusing public and private debt. When they use phrases like "a run" on assets they seem to be implying that somehow foreigner's can foreclose on Government debt. More electioneering.