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To finance current budget deficit, US government relies on T bond sales. The significant portion(over 30%) of T bonds are purchased by foreign governments or
To finance current budget deficit, US government relies on T bond sales. The significant portion(over 30%) of T bonds are purchased by foreign governments or capitalists(lately China). What is your opinion about relying on foreign debt to finance US budget deficit? If some foreign countries became unhappy about trade or political matter with US government ( of the new president, Biden) or due to lack of confidence over US T Bond and decided to cash out (sell) US T bonds they are holding, what economic consequence do you expect to be occurred?
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