Who Owns the National Debt?

Discussion in 'Economy' started by 5stringJeff, Jun 2, 2006.

  1. 5stringJeff
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    5stringJeff Senior Member

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  2. BaronVonBigmeat
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    BaronVonBigmeat Senior Member

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    Yes, but between the Chinese and Japanese, you're talking about roughly a trillion dollars their central banks are sitting on, out of a total of roughly (I think) $10~12 trillion dollars in circulation. If they decided to unload these rapidly depreciating dollars, it could cause a panic as all the other little countries shown unload theirs as well, hoping to head for the exits while their dollars are still worth something. A domino effect, in other words. If that happens, you're looking at more like 2 trillion dollars suddenly dumped in our economy. Imagine what would happen to our already high inflation rate.
     
  3. jasendorf
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    jasendorf Senior Member

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    Yeah, we only owe the ChiComs $321 Billion...
     
  4. Mr. P
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    Mr. P Senior Member

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    Imagine what would happen to the world. Tis why I don't think it will happen.
    The results would be a disaster for everyone. I’m no economist, but the global economy is so intertwined that a glitch here of that magnitude would effect everyone and they know it IMO.
     
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  5. 5stringJeff
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    5stringJeff Senior Member

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    If you look at the bar chart, you'll see that Japan is already selling off their debt holdings, to the tune of $33B, or about 5% of their holdings. I do understand your concerns about a rapid inflation of the dollar, but only about 1/3 of our debt is foreign owned. I think we would be able to get out of it all right.
     
  6. 5stringJeff
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    5stringJeff Senior Member

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    That's only about 4% of the entire debt, which is nothing, percentage-wise.
     
  7. jasendorf
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    jasendorf Senior Member

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    Oh, well then, YOU pay the interest on it and leave me and my family out of it... I mean really... if it's "nothing." As for me and my family, I'd rather not pay juice to the Chinese on $1 let alone $321 billion.
     
  8. Annie
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    Annie Diamond Member

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    It doesn't work that way. You and your family though are free to move onto some other country, less onerous.
     
  9. jasendorf
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    jasendorf Senior Member

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    So, the Chinese hold $321 billion dollars interest free? How nice of them!

    How about I stay right here and fight the Republican Party's spend-and-spend-some-more fiscal policy?
     
  10. Annie
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    Annie Diamond Member

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    Feel free. Good luck. :rolleyes:
     

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