Who pays for Uncle Sam’s deficits?

Who pays for Uncle Sam’s deficits?

 

About wcoats

I specialize in advising central banks on monetary policy and the development of the capacity to formulate and implement monetary policy.  I joined the International Monetary Fund in 1975 from which I retired in 2003 as Assistant Director of the Monetary and Financial Systems Department. While at the IMF I led or participated in missions to the central banks of over twenty countries (including Afghanistan, Bosnia, Croatia, Egypt, Iraq, Israel, Kazakhstan, Kenya, Kosovo, Kyrgystan, Moldova, Serbia, Turkey, West Bank and Gaza Strip, and Zimbabwe) and was seconded as a visiting economist to the Board of Governors of the Federal Reserve System (1979-80), and to the World Bank's World Development Report team in 1989.  After retirement from the IMF I was a member of the Board of the Cayman Islands Monetary Authority from 2003-10 and of the editorial board of the Cayman Financial Review from 2010-2017.  Prior to joining the IMF I was Assistant Prof of Economics at UVa from 1970-75.  I am currently a fellow of Johns Hopkins Krieger School of Arts and Sciences, Institute for Applied Economics, Global Health, and the Study of Business Enterprise.  In March 2019 Central Banking Journal awarded me for my “Outstanding Contribution for Capacity Building.”  My most recent book is One Currency for Bosnia: Creating the Central Bank of Bosnia and Herzegovina. I have a BA in Economics from the UC Berkeley and a PhD in Economics from the University of Chicago. My dissertation committee was chaired by Milton Friedman and included Robert J. Gordon.
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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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