To require a study of debt held by foreigners.

SA 3131. Mr. BAUCUS (for himself and Mrs. Lincoln) proposed an
amendment to the joint resolution H.J. Res. 47, increasing the
statutory limit on the public debt; as follows:

At the end of the joint resolution, insert the following:
``Sec.    Study.--(a) The Secretary of the Treasury, in
consultation with the Board of Governors of the Federal
Reserve System and other appropriate agencies of the United
States Government, shall conduct a study to examine the
economic effects of the holding of United States publicly-
held debt by foreign governments, foreign central banks,
other foreign institutions, and foreign individuals.
(b) The Secretary shall transmit that study to the Congress
within 180 days of the date of enactment of this legislation.
(c) The study shall provide an analysis of:
``(1) for each year from 1980 to the present, the amount
and term of foreign-owned debt held by the public, broken
down by foreign governments, foreign central banks, other
foreign institutions, and foreign individuals, and expressed
in nominal terms and as a percentage of the total amount of
publicly-held debt in each year;
``(2) the economic effects that the increased foreign
ownership of United States publicly-held debt has on
``(A) long-term interest rates in the United States,
``(B) global average interest rates,
``(C) the value of the United States dollar,
``(D) United States capital market liquidity,
``(E) the cost of private capital in the United States,
``(F) the generation of employment in the United States
through foreign affiliates, and
``(G) the growth in real gross domestic product of the
United States;
``(3) (A) for each year from 1980 to the present, the
effect of foreign debt on the United States income account,
``(B) the predicted effect over the next 20 years, and
``(C) the effect of the deteriorating income account on the
overall United States current account deficit;
``(4) the ability of the Department of the Treasury to
track purchases of publicly held debt in secondary and
tertiary markets, or, if this ability does not exist, the
implications of that inability for fiscal policy, monetary
policy, and the predictability of capital markets;
``(5) the effect that foreign ownership of United States
publicly-held debt has or could have on United States trade
policy;
``(6) whether the level of United States debt owned by
China may adversely affect the ability of the United States
to negotiate with China regarding currency manipulation by
China;
``(7) the effect of the increase of foreign holdings of
United States debt held by the public on national security;
and
``(8) the implicit tax burden that results from foreign
ownership of United States debt held by the public, defined
as the per capita amount that a United States Federal income
taxpayer would pay in annual Federal income taxes to fully
service such foreign debt during each of fiscal years 2006
through 2010.''
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