|
The United States government must import over $2 billion every day to stay afloat. The three largest holders of U.S. debt are (1) Great Britain, (2) Japan and (3) China. China is also the nation with which we have a staggeringly huge trade deficit. So if China is hoarding cash in its own banks, there's less for export. This will also drive interest rates up in China which can force the Federal Reserve to reciprocate here.
Overall, this can make debt more expensive for everyone: governments, private equity groups, publicly traded companies and individuals.
|