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Japan Surpasses China As Largest Holder Of U.S. Debt
Another way of reading this is that Japan is out pacing China with industrial output and as a result has chosen to be paid primarily in US reserve notes rather than in dollars.
This serves to curb inflation in the exporting country as they are not flooded with a strong US currency for these goods. Holding reserve notes as payment helps exporting countries control their inflation as well as better deal with the issues of currency exchanges.
Don't be fool by those in the media who shout, "The US is indebted to these exporting countries."
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This serves to curb inflation in the exporting country as they are not flooded with a strong US currency for these goods. Holding reserve notes as payment helps exporting countries control their inflation as well as better deal with the issues of currency exchanges.
Don't be fool by those in the media who shout, "The US is indebted to these exporting countries."
In fact, it is quite the other way around.