The U.S. — meaning both parties and the public and private sectors — has to worry about what global investors make of the picture of disarray they now see in the U.S. That’s a crucial consideration because the U.S. now depends on foreign capital to finance both a trade deficit of more than $700 billion and a $400 billion federal budget deficit. Today, foreign lenders hold about half of America’s public debt, and the nation relies on them to finance more than 70% of its new debt, the nonpartisan Peter G. Peterson Foundation estimates.

http://blogs.wsj.com/politicalperceptions/2008/09/30/dysfunction-in-washington-exacts-a-heavy-price/

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