Special Focus Article – The China Syndrome January 2013

Of the roughly $16 trillion of outstanding U.S. government debt, more than one-third ($5.5 trillion dollars) is held by foreigners. That marks a dramatic change since 2001 when only 17 percent was held by foreigners. Put differently, of the $10 trillion in U.S. government debt added over the past 10 years, 44 percent has been purchased by foreigners. China, for example, currently holds over $1 trillion of U.S. debt, up from just $79 billion a decade ago.

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RCF Economic Update and Forecast Summary January 2013

RCF’s latest economic update for January 2013 for the national economy is available now:icon RCF_Economic_Update_and_Forecast_January_2013.pdf (266 KB)


    • Economy enters 2013 in relatively good shape with employment growing steadily.
    • Tax increases and probable spending cuts resulting from fiscal cliff fix will negatively affect growth but not so much as to prevent gradual decline in unemployment.
    • Fed’s easy money policies will continue through 2013 and into 2014.
    • Yield curve will likely steepen; long-term rates may increase as a result of expectations of somewhat higher inflation.
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