Financing U.S. Debt

U.S. government borrowing has grown substantially since the start of the economic crisis. Many fear that this trend will diminish U.S. power relative to other countries, particularly large creditor countries such as China. But the sources of borrowing have changed as well. More of the financing is now coming from domestic rather than foreign sources. What role does the level and source of borrowing play in determining relative power?

Setser: Sovereign Wealth and Sovereign Power

CFR Meeting: The Global Consequences of the Crisis

CGS: Foreign Exchange Reserves in the BRICs

Burrows, Harris: Geopolitical Effects of the Financial Crisis