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Canada just landed at #5 on the list of the largest foreign holders of U.S. government debt — $460 billion worth, according to the latest Treasury data. Most people's first instinct is that this must give Canada some kind of leverage over Washington, but Japan's own $1.1 trillion position proves that instinct wrong. I break down why the U.S. can sell this much debt so easily, what actually happened when Japan floated using its holdings as a bargaining chip, and why this whole dynamic quietly shapes the fixed mortgage rate you're offered.


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