[The Clockwork Rat]

US federal deficit: who owns America's debt?

China has defended its investment in US Treasury bonds, amid concern that its position as the biggest investor in US debt may become political as well as economic.

Treasury bonds are how the US - and all governments for that matter - borrow money: they issue government securities, which other countries and institutions buy. So, the US national debt is owned predominantly by Asian economies. The US Treasury releases the figures on this - here they are in a more useable form.

Last year, China expressed concern over the security of its vast United States treasury holdings and premier Wen Jiabao has urged Washington to safeguard their value.

(table continues in link)

Interesting, the UK is the 4th largest holder of US debt.

I don't have much to say about this, but I thought others might be interested.

[Average Voter]

Right now China is below Japan on the list.

[NYYS]

For the sake of complete disclosure it should be noted that the above list is only the percentage of our debt held by foreigners. That is only about 25%, if I recall. The rest is held domestically.

[Wolfman]

The majority our 'domestic' debt is held by foreign banks.

[QatzelOk]

The majority our 'domestic' debt is held by foreign banks.

Check and mate.

This means they own your government, just like they own banana republics.

[Nets]

This means they own your government, just like they own banana republics.

No it doesn't.

[QatzelOk]

"We can't pay our loans! We need to borrow more money!"

Bank: "No problem. Just sign right here, and we'll arrange this banking problem your administration seems to be having."

That's ownership, Nets. Controlling someone else's survival.

[politburo player]

U.S. pension funds hold over 5 trillion in U.S. debt. 'Intergovernmental pension funding', or something like that. That makes the U.S. the largest single holder of U.S. debt. Also, I hear Japan recently switched places with China as the #1 U.S. creditor.

[Nets]

Qatz, think through the consequences for China if they stop parking their excess reserves in US treasuries.

[QatzelOk]

Qatz, think through the consequences for China if they stop parking their excess reserves in US treasuries.

Step back from the Economics text for a moment.

China sells the US stuff at firesale prices in order to buy oil from the Middle East and Central Asia.

Meanwhile, there are hundreds of millions of potential consumers in these very regions.

Soon, they will be receiving the Chinese consumer goods directly without being forced (at gunpoint) to worship green paper printed by the Federal Reserve.

American money is currently a military-mandated ponzi scheme by a non-productive free-rider nation that is run by non-productive free-rider financiers.

[stalker]

What I find most interesting about this list is that America's strategic competitors (China, Russia, etc) tend to be reining back on US Treasuries or keeping them stable, while it is America's closer allies (UK, Japan, Canada, France) who are still substantially increasing their holdings.

[DubiousDan]

Interesting, the UK is the 4th largest holder of US debt.

I don't have much to say about this, but I thought others might be interested.

What kind of interested me is the amount that Luxembourg holds. What also interested me is that Luxembourg seems to be cutting back consistently.
Luxembourg has about half a million inhabitants. It didn’t get where it’s at by being dumb.
Luxembourg isn’t a Johnny come lately to the finance game. It was one of the original Benelux countries that started the EU. When I was there in Fifty-four, they used Chryslers for taxi cabs. That’s where I first saw the Fifty-five Chevrolet hardtop. In a showroom at night, with the lights on it. Took my breath away.

As for the UK holding so much US debt. That should worry anyone who lives there. The UK is up to its neck in debt, and to have another bad investment on its list is hardly a plus.

[Rei Murasame]

Goodness me, when will we be getting our money back?

Maybe the USA should just give Britain back the entire NorthEast area, and give Hawaii to Japan, and maybe we'll overlook this debt.

On a more serious note, this whole thing is a powder keg just waiting to explode.

[The Clockwork Rat]

Perhaps Hawaii to Japan would work, but if the NE includes New York, which it does, then I think it's worth a bit more than what we're holding

[killim]

What I find most interesting about this list is that America's strategic competitors (China, Russia, etc) tend to be reining back on US Treasuries or keeping them stable, while it is America's closer allies (UK, Japan, Canada, France) who are still substantially increasing their holdings.

Quid pro Quo is the answer

And of course carry-trades.

[DanDaMan]

What I find most interesting about this list is that America's strategic competitors (China, Russia, etc) tend to be reining back on US Treasuries or keeping them stable, while it is America's closer allies (UK, Japan, Canada, France) who are still substantially increasing their holdings.

That's because they are in the toilet just as we are.
What you are seeing is the culmination of Leftist Corporatism.
This is what THEY, the Liberal Left, want. Monetary destruction on a global scale.

[Stormsmith]

note to self: Don't feed the troll, Don't feed the troll, Don't feed the moronic troll...

[Ombrageux]

I know I am economically illiterate (I am currently attempting to remedy this by plowing through Mankiw's Principles of Economics), but I really do love Qatz. There must be some sort of subversive, anti-capitalist/elitist propaganda organization that could use your services.

[DanDaMan]

American money is currently a military-mandated ponzi scheme by a non-productive free-rider nation that is run by non-productive free-rider financiers.

Putting aside the military part.... I agree!

[QatzelOk]

The military is the last resort when the American dollar is threatened, as it (was) is in Iraq and Iran.

Latin America is another region that looks at risk of abandoning the US dollar as a reserve currency/exchange currency.

Imagine if you could only buy oil with Canadian Tire money. That hardware chain would be the most powerful institution on earth, and they could completely stop selling hardware or doing anything else that contributes to productivity of any kind.