japan is now the largest us debt holder

[blu]

china sold off 4.3% of its t-bills putting it behind japan. kind of scary that such an economically unstable country holds the most of our debt

 

[rightwinger]

Thank you Japan

Can you fix my Toyota now?

 

[uscitizen]

china sold off 4.3% of its t-bills putting it behind japan. kind of scary that such an economically unstable country holds the most of our debt

Kind of fittiing if you aske me.

 

[hjmick]

Thank you Japan

Can you fix my Toyota now?

Meh, mine was built in Japan, I'm not worried.

 

[xsited1]

Thank you Japan

Can you fix my Toyota now?

[ame=http://www.youtube.com/watch?v=URSKm4VKg10]YouTube - Toyota Lawn Mower.wmv[/ame]

 

[Mr.Fitnah]

Thank you Japan

Can you fix my Toyota now?

[ame=http://www.youtube.com/watch?v=URSKm4VKg10]YouTube - Toyota Lawn Mower.wmv[/ame]

I wasnt expecting that
hahahahaha

 

[Avatar4321]

well. i guess that knowledge test we all just took in Jillian's thread isnt correct anymore.

So what happens if we dont pay Japan back? Will they attack us to collect our debt through war?

 

[Mr.Fitnah]

Higher interest rates here we come.

 

[Gadawg73]

China has NEVER been the largest holder of US debt. Ever.
They are #3 now where they have been for a long time.
Guess who #1 is.

 

[uscitizen]

Foreign demand for Teasury securities falls




Feb 16, 1:31 PM (ET)

By MARTIN CRUTSINGER

WASHINGTON (AP) - The government said Tuesday that foreign demand for U.S. Treasury securities fell by the largest amount on record in December with China reducing its holdings by $34.2 billion.

The reductions in holdings, if they continue, could force the government to make higher interest payments at a time that it is running record federal deficits.

The Treasury Department reported that foreign holdings of U.S. Treasury securities fell by $53 billion in December, surpassing the previous record of a $44.5 billion drop in April 2009.

The big drop in China's holdings meant that it lost the top spot in terms of foreign ownership of U.S. Treasuries, dropping to second place behind Japan.

Japan increased its holdings of U.S. Treasuries, boosting them by $11.5 billion to $768.8 billion in December. That amount was higher than China's December total of $755.4 billion, putting Japan back in the top spot in terms of foreign ownership of Treasury securities, a position it had lost in the fall of 2008 when China surpassed Japan.

My Way News - Foreign demand for Teasury securities falls

 

[Gadawg73]

US citizens are the #1 holder of US debt.
Japan has always been #2
China is #3 and has never been #2.
Your article is T securities only. Japan holds other securities other than the Treasuries.

 

[Mr.Fitnah]

Lone voice warns of debt threat to Fed
By Alan Rappeport in Washington
Published: February 16 2010 20:23 | Last updated: February 16 2010 20:23
The US must fix its growing debt problems or risk a new financial crisis, Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, warned on Tuesday, adding a mounting deficit could spur inflation.

Mr Hoenig said that rising debt was infringing on the central bank’s ability to fulfil its goals of maintaining price stability and long-term economic growth. “Stunning” deficit projections were putting political pressure on the Fed to keep interest rates low, infringing on its independence at the risk of inflation, he said.



“Without pre-emptive action, the US risks its next crisis,” Mr Hoenig said in a speech at the Pew-Peterson Commission on Budget Reform.

He was the only Fed member who dissented at last month’s meeting against language indicating that interest rates should remain near zero for an “extended period”.

On Tuesday he said that the worst option for the US was a scenario where the government “knocks on the central bank’s door” and asks it to print more money. Instead, the administration must find ways to cut spending and generate revenue. He called for a “reallocation of resources” and noted that the process would be painful and politically inconvenient.

The US budget deficit is projected to be $8,000bn (€5,800bn, £5,000bn) in the next decade. Barack Obama, US president, recently lifted the government’s borrowing authority to $14,300bn.

If the Fed succumbed to pressure to increase the money supply, Mr Hoenig said, inflation would lead to a loss of confidence in the dollar and in the economy. Meanwhile, a potential stalemate between the fiscal and monetary authorities that govern the economy could allow growing imbalances to go unchecked, thus raising the costs of borrowing and of capital for the US.

The hawkish Kansas Fed president also warned against “dire” consequences of the central bank prolonging its holdings of mortgage-backed securities, which it purchased in an effort to prop up the US housing market. Mr Hoenig painted a picture of a slippery slope, where a less independent Federal Reserve was asked to find ways to support other ailing sectors, such as agriculture.

The Federal Reserve is purchasing $1,250bn in MBS through March. Mr Hoenig said that it must shrink its balance sheet as quickly as possible while being careful and systematic.

Being pulled into the political framework has complicated the Fed’s job, which Mr Hoenig said should remain focused on the Fed funds rate and price stability.

Holding tightly to the notion of Fed independence, he rejected a suggestion published in a paper by Olivier Blanchard, chief economist at the International Monetary Fund, that central banks should set higher inflation targets. He also said he hoped to avoid political pressure to restore quantitative easing policies.

“That’s when independence will be more important than ever,” he said.

Copyright The Financial Times Limited 2010. You may share using our article tools. Please don't cut articles from FT.com and redistribute by email or post to the web.

 

[Polk]

Some inflation would be a good thing. There is an increasing amount of evidence that we've done too much to maintain price stability.

 

[Devin]

China holds 9% of US debt.

 

[☭proletarian☭]

So... China no longer has any confidence in its American holdings?

 

[blu]

So... China no longer has any confidence in its American holdings?

they are in a bad position. they probably want to sell everything they have, but not only would that wreck our economy, it would also destroy theirs. its better for them to just wait it out.

 

[Devin]

China's economy is tightly intertwined with that of the US. For that matter, the entire world's economy is somehow tied to the US's fiscal condition, so if the US fails, it's a domino effect.

 

[dab11999]

china sold off 4.3% of its t-bills putting it behind japan. kind of scary that such an economically unstable country holds the most of our debt

It's even scarier this country thinks going even deeper into debt is economic growth.

 

[uscitizen]

So... China no longer has any confidence in its American holdings?

So it would appear, they walk a fine line, they still need us as customers, but could exsit without us, better than we could without them.

 

[dab11999]

China's economy is tightly intertwined with that of the US. For that matter, the entire world's economy is somehow tied to the US's fiscal condition, so if the US fails, it's a domino effect.

Not really. They are just as tied to Brazil. They are also competing with us for free trade in Africa. What you are saying is a false sense of security. If the US fails they will buy it up along with several other bidders. That's the real danger. The US is in danger of becoming a fire sale. Why do you think the Fed is grabbing all assets they can get their hands on? It's not the US they are bailing out. And Obama putting us deeper into debt while expanding our warzone is good economics? The Dems are going to destroy this country finally beating the GOP. Their self serving short sightedness is killing us. China is just helping them out.