American Economic - Masthead Fighting For American Companies - Fighting for American Jobs United States Business and Industry Council
Current Trade Deficit: - Presented by The Robert A. Stranahan Lectures
Here's How the Fed May Finally Lose Its Power
Monday, December 31, 2012
How it will come, though, isn't as difficult to decipher.

"That decision largely is not up to Americans. That decision is largely up to our foreign creditors," said Alan Tonelson, research fellow at the U.S. Business and Industry Council in Washington, D.C. "After all, it is their continued lending to the U.S. economy that is largely if not exclusively responsible for the Fed's ability to continue to print money and keep interest rates so low. That's been the key."

Indeed, foreign central banks continue to step up to the plate to help the Fed buy up U.S. debt, which is now in excess of $16 trillion. (Read More: Will 'Fiscal Cliff' Accelerate Millionaire Deaths?)

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