Who pays for Uncle Sam’s deficits?

Who pays for Uncle Sam’s deficits?


About wcoats

Dr. Warren L. Coats specializes in advising central banks on monetary policy, and in the development of their capacity to formulate and implement monetary policy. He is retired from the International Monetary Fund, where, as Assistant Director of the Monetary and Financial Systems Department, he led missions to over twenty countries. Before then, he served as Visiting Economist to the Board of Governors of the Federal Reserve System, and to the World Bank, and was Assistant Prof of Economics at the Univ. of Virginia from 1970-75. Most recently he was Senior Monetary Policy Advisor to the Central Bank of Iraq; an IMF consultant to the central banks of Afghanistan, Kenya and Zimbabwe; and a Deloitte/USAID advisor to the Government of South Sudan. He is currently a member of the Editorial Board of the Cayman Financial Review and until the end of 2013 was a member of the IMF program team for Afghanistan. His most recent book is entitled "One Currency for Bosnia: Creating the Central Bank of Bosnia and Herzegovina."
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2 Responses to Who pays for Uncle Sam’s deficits?

  1. Mike Burnaugh says:

    Thanks again, Dr. C! And what kind of atrocity will the Senate give us this fall, as they fail to pass, or even consider any regular order appropriations bills?Oh, please shut down the Govt.! First casualty should be the paychecks of Congressmen and Senators. Since they don’t do their jobs, who needs them?

  2. Jim Roumasst says:

    Thanks, Warren. So, roughly speaking, the fiscal deficit drives the trade deficit, which is balanced by a capital market surplus. This means that the share of American wealth held by foreigners is gradually rising. That is what makes the situation unsustainable. But long before foreigners own our country, they will impose conditionalities on its management. As national sovereignty is eroded, government by the people will perish from the earth.

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