I call BS. Forbes states, "The problem is that the Treasury has the mother of all conflicts of interest: this is because it depends on Japanese purchases of U.S. bonds to finance about one-third of America’s gigantic current account deficits." Hardly anyone aside from the FED buys US paper anymore. The UK, Australia and Ireland have increased their holdings over the last year along with some other groups but not nearly enough to cover the issues. Even "our great ally Israel" is selling.
Here's the US Treasury's own numbers.
The reality is other countries are figuring out they can do as they please and the US is powerless to stop them short of bombing or invading them.
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