Foreign Holdings of U.S. Debt: Is Our Economy Vulnerable?« Thread Started on Jul 26, 2007, 2:28am » --------------------------------------------------------------------------------Foreign Holdings of U.S. Debt: Is Our Economy Vulnerable?House Committee on the Budget, June 26, 2007Kenneth Rogoff, Visiting Fellow, Economic Studies, Global Economy and Developmentread at source> http://www.brookings.edu/views/testimon ... htmKenneth Rogoff With the United States running a current account deficit at 6 percent of national income, foreign nationals have been accumulating U.S. assets at a spectacular rate. Taking into account recent stock market gains, foreigners now hold well over $14 trillion of U.S. assets, more than a 100 percent of U.S. gross domestic product. Foreigners, mainly foreign central banks and government investment funds, hold more than $2.5 trillion in U.S. Treasury securities alone. Incredibly, the United States absorbs roughly 70 percent of all net saving produced by the world's current account surplus countries, including China, Japan, Germany and the oil exporting countries. Borrowing on this scale by any large country, much less the world's pre-eminent economy is unprecedented in modern world history.