U.S. may be vulnerable(because of reliance) to (foreign governments)'sovereign funds: report

[UpInArms]

Source: Reuters

NEW YORK (Reuters) - The United States' current reliance on foreign governments for financing represents a strategic vulnerability, according to a report by the Council of Foreign Relations released on Tuesday.

The longer the United States relies on international central banks and sovereign funds to support large external deficits, the greater the risk the economy's need for external credit will constrain the government's policy options, the report said.

It also warns that countries that do not share U.S. political values and policy goals could use large holdings of U.S. assets as political and economic leverage.

"This does not mean foreign creditors are certain or even likely to use their financial assets as a weapon. It does mean that they could do so if they want," Brad Setser, CFR fellow for geoeconomics, said in a statement accompanying the report.

For the United States to guard against the effects of a disruption in foreign financing, it should consult with allies who hold dollars, support policy changes abroad that would reduce the buildup of assets in state hands, reduce the U.S. budget as well as oil imports, Setser added.

Read more: http://www.reuters.com/article/bondsNews/idUSN0929524520080909

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This mal-administration has sold out our nation's sovereignity for their crappy bubbles

[HeresyLives]

1. I'm amazed they've just now

figured that out!

[peace frog]

2. Gee, ya think?

Where have these pinheads been for the last eight years?

[Tempest]

3. You think they would have figured that out in 2005

In 2005 a rumor was started that South Korea was going to slow dollar purchases and diversify their currency portfolio, moving towards the Euro.

The rumor caused the dollar to nose dive out of control and the markets tanked.

[biermeister]

4. Don't think for one minute the CFR has been asleep

What's important is that they are now telling us that we are at risk. Soon the hammer will drop and we'll be in deep(er)shit

[Ian David]

5. Thank you, Reaganomics! n/t

[bemildred]

6. "May be?"

Are these dimwits paying any attention?

WE HAD A SURPLUS WHEN BUSH TOOK OFFICE!

[antigop]

7. "...will constrain the government's policy options,..." -- yep. Kiss the New Deal good-bye.nt

[AnnaLouise]

8. Already Greyhound is in the hands of British owned Laidlaw

Already Greyhound is in the hands of British owned Laidlaw

Foreign companies BP, Shell, Circle K have big shares of the
American market

Foreigners find it easier than Americans to buy land in Washington DC
and elsewhere
etc

Pics of Palin victims below