business

Foreign ownership of U.S. debt rises; China reclaims top spot

13 Comments
By CHRISTOPHER S. RUGABER

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13 Comments
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Having a third of our debt in foreign hands should be a national security concern for America.

0 ( +2 / -2 )

Many countries are trading directly using barter and currencies other than US dollar. Japan and China both have currency swap agreements with their major trading partners.

The use of the US dollar by other countries has been declining year after year in a long term decline. The use of the US dollar as a reserve currency will take a big HIT as soon as China makes the yuan, also called renminbi, more convertible and when it is added to the SDR at International Monetary Fund.

The external debt of the USA is growing bigger every year, it is now about US$ 18000 billion for a 2014 population of 319 million. That works out to US$ 18 000 000 million / 319 million = US$ 56400 for every US citizen. This is more than the its 2015 per capita GDP of US$ 53,042 according to World Bank.

The USA will be forced to pay much higher interest rates to attract people to buy its debts, also called US Treasury bonds and notes, due to the long term decline of the use of the US dollar.

2 ( +2 / -0 )

This is alarming though the U.S. economy has seen growth after the great recession. There are still concerns over the rising debt.

0 ( +0 / -0 )

Having a third of our debt in foreign hands should be a national security concern for America.

Uh, why? Foreigners sell stuff to Americans. They get paid in US dollars. They park those dollars in US Treasury accounts rather than exchange them back into their own currency, allowing them to avoid appreciation of their currency. They then continue selling stuff, getting more dollars, and parking them in US treasury accounts. The effect on American national security is ZERO.

-5 ( +2 / -7 )

"Made in China... We own you"

"We" are Americans and "you" are the Chinese. Don't believe me? If Americans stopped buying Chinese-made stuff, oh my...

-1 ( +0 / -1 )

America is dependant on financing from the Communists

The Communist Chinese issue US Dollars????

-3 ( +2 / -5 )

America is dependant on financing from the Communists and Walmart is nothing more than the Communist import agency.

Don't believe me? Walk into Walmart, grab a product off the shelf and look on the back, you'll see 3 words.

Made in China

Considering China isn't communist anymore, you could use that same argument to argue that the Americans won the cold war.

0 ( +1 / -1 )

The US is doomed.

-1 ( +0 / -1 )

The mechanics of foreigners owning our debt doesn't matter. It's the FACT that we are so dependent on foreigners to finance our Government, harvest our crops, create our manufactured goods, fuel our vehicles etc.that the nation is in the shape it's in.

-2 ( +0 / -2 )

Burning Bush is right. Not only Walmart but stores in fancy shopping centers. It has been difficult to find made by American manufacturers for consumer products. For many years. Many ignorant people believe China is enemy of USA but actually China has been friendly to USA. rescuing crisis of US economy created by Japan Inc dominating US industries.

-1 ( +0 / -1 )

China has been friendly to USA. rescuing crisis of US economy created by Japan Inc dominating US industries.

Toshiko, USA is incurring the largest trade deficit from China. If you are talking about Japanese car companies in USA, they are investments from Japan and creating jobs in USA not in Japan.

blogos.com/article/57241/

-2 ( +0 / -2 )

@tina Not just cars. Electronic product makers and different industries Japan inc dominating. Only industry in USA left for USA corporation is Weapon industry. For instance, TV, Medical equipment, Laptop, batteries, etc. Japan Inc create USA jobs. Can you name American industry that create jobs for Americans as efficient as Japan Inc has been achieving?

0 ( +0 / -0 )

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