Who owns America? Hint: It's not China

Discussion in 'Politics' started by Lakhota, Jul 28, 2011.

  1. Lakhota
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    Lakhota Diamond Member

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    Editor's Note: The following piece comes from Global Post, which provides excellent coverage of world news - important, moving and odd.

    By Tom Mucha, Global Post

    Truth is elusive. But it's a good thing we have math.

    Our friends at Business Insider know this, and put those two principles to work today in this excellent and highly informative little slideshow, made even more timely by the ongoing talks in Washington, D.C. aimed at staving off a U.S. debt default.

    Here's the big idea:

    Many people — politicians and pundits alike — prattle on that China and, to a lesser extent Japan, own most of America's $14.3 trillion in government debt.

    But there's one little problem with that conventional wisdom: it's just not true. While the Chinese, Japanese and plenty of other foreigners own substantial amounts, it's really Americans who hold most of America's debt.

    Here's a quick and fascinating breakdown by total amount held and percentage of total U.S. debt, according to Business Insider:

    •Hong Kong: $121.9 billion (0.9 percent)
    •Caribbean banking centers: $148.3 (1 percent)
    •Taiwan: $153.4 billion (1.1 percent)
    •Brazil: $211.4 billion (1.5 percent)
    •Oil exporting countries: $229.8 billion (1.6 percent)
    •Mutual funds: $300.5 billion (2 percent)
    •Commercial banks: $301.8 billion (2.1 percent)
    •State, local and federal retirement funds: $320.9 billion (2.2 percent)
    •Money market mutual funds: $337.7 billion (2.4 percent)
    •United Kingdom: $346.5 billion (2.4 percent)
    •Private pension funds: $504.7 billion (3.5 percent)
    •State and local governments: $506.1 billion (3.5 percent)
    •Japan: $912.4 billion (6.4 percent)
    •U.S. households: $959.4 billion (6.6 percent)
    •China: $1.16 trillion (8 percent)
    •The U.S. Treasury: $1.63 trillion (11.3 percent)
    •Social Security trust fund: $2.67 trillion (19 percent)

    So America owes foreigners about $4.5 trillion in debt. But America owes America $9.8 trillion.

    More: Who owns America? Hint: It's not China
     
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  2. Lakhota
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    Lakhota Diamond Member

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    China: U.S. Debt Crisis Is Giving Democracy A Bad Name

    WASHINGTON -- The seemingly endless process of resolving America's debt crisis may be giving America and its democratic form of governance a bad name in China, where much of that debt is held.

    "This is a big issue -- what is it about the democratic process that is preventing [America] from getting something done?" said Charles Freeman III, a China policy expert at the Center for Strategic and International Studies. "What I think Chinese officials prize more than anything is stability and predictability. To do that they want to know the way forward, and this kind of activity is completely flabbergasting."

    No place outside the U.S. has more invested in the outcome of the debt ceiling debate than China: as America's largest creditor, China currently holds some $1.5 trillion in Treasury securities; about one-third of its currency reserves are in the dollar.

    More: China: U.S. Debt Crisis Is Giving Democracy A Bad Name

    NOTE: Actually China is NOT America's largest creditor - America is.
     
  3. ekrem
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    ekrem VIP Member

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    Nevertheless it's high values and make the USA vulnerable to foreign-sourced manipulation of it's currency.
    It is highly unlikely that someone would create stress for $ in 2011, as $ still is world currency, but, you can't say that indefinitely.

    Chinese ownership in credits to America is set to rise further.
    You can't absorb the shock which would be created if China starts looking to "sell" it's debtee money to new owners.
     
  4. Lakhota
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    Lakhota Diamond Member

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    I find it interesting that I have never once heard any elected official of either party publicly state that Social Security is America's largest creditor. I usually hear the opposite from Republicans - stating that Social Security is bankrupt or soon will be.
     
  5. bucs90
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    bucs90 Gold Member

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    We should end Social Security. Biggest ponzi scheme in world history.
     
  6. Lakhota
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    Lakhota Diamond Member

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  7. bucs90
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    bucs90 Gold Member

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    I anticipated seeing a link that detailed an intelligent response of why Social Security is not a ponzi scam. I expected a private or independent research link.

    I clicked on the link that was meant to show why SS is not a scam.

    And was immediately met by the seal of the Social Security Administration.

    The SSA's explanation of why it is not a scam?

    Kinda like letting the rapist convince us it was consentual, isn't it?
     
  8. Lakhota
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    Lakhota Diamond Member

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    No, what you anticipated was a pissing contest - which I don't feel you're worthy of.
     
  9. IndependntLogic
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    IndependntLogic Senior Member

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    One of the most interesting and informative posts I've seen. Thanks so much for this.:clap2:
     
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  10. Ringel05
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    Ringel05 Diamond Member

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