Inflation, Debt, and The Fed (Part 2) with Scott Sumner and Lyn Alden
Village Global Podcast
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Is the United States Able to Borrow at Lower Industy Rates?
The United States has gone from the world's biggest creditor nation, to being by far the most negative absolute international investment position. Foreigners are increasingly taking their surpluses and then they're buying us assets, rather than just treasury bonds. And so a general trend that we've seen over the past 25 years is that foreigners are increasingly taking our surpluses but also buying real assets such as stocks or land. It's hard to say how long that can go on for - it's maybe 70 per cent right now,. Could have reached negative a hundred per cent forever. Eventually that, countizes, and reaches politically untenable levels. I think, i would describe it essentiually
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