Who does the United States Owe?

Japan owns $1.1 trillion in U.S. debt. As of January 2017, it was the largest foreign holder. China owns $1.05 trillion. Both Japan and China want to keep the value of the dollar higher than the value of their currencies. That helps keep their exports affordable for the United States, which helps their economies grow. That's why, despite China's occasional threats to sell its holdings, both countries are happy to be America's biggest foreign bankers. China replaced the United Kingdom as the second largest foreign holder on May 31, 2007. That's when it increased its holdings to $699 billion, outpacing the United Kingdom's $640 billion.

Ireland is third, holding $294 billion. Brazil is the fourth largest holder at $258 billion.

The Cayman Islands is fourth, at $257 billion. The Bureau of International Settlements believes it is a front for sovereign wealth funds and hedge funds whose owners don't want to reveal their positions. So are Luxembourg ($219 billion) and Belgium ($112 billion).

The next largest holders are Switzerland, the UK, Hong Kong, Taiwan and India. They each hold between $113 and $214 billion. (Source: “Foreign Holding of U.S. Treasury Securities,” February 15, 2017. "Petrodollars and Global Imbalances," U.S. Treasury, February 2006.)

https://www.thebalance.com/who-owns-the-u-s-national-debt-3306124

Top | Newest First | Oldest First

newbie · 31-35, F

and your point is??? 🤔

jackjjackson · 61-69, M

Not sure. You tell me.

newbie · 31-35, F

makes even less sense ... 🐵

Experienced33 · M

Thanks Prez Obama

IvanKaramazov

Macroeconomics is counterintuitive, and as long as we can bomb our creditors into oblivion, in practical terms what we owe is irrelevant.

jackjjackson · 61-69, M

Excellent point Ivan.

Crazily we appear to owe a lot to ourselves?

Intragovernmental Holdings. This is the federal debt owed to 230 other federal agencies. It totals $5.554 trillion, almost 30 percent of the debt. Why would the government owe money to itself? Some agencies, like the Social Security Trust Fund, take in more revenue from taxes than they need. Rather than stick this cash under a giant mattress, they buy U.S. Treasurys with it.

By owning Treasuries, they transfer their excess cash to the general fund, where it is spent. Of course, one day they will redeem their Treasury notes for cash. The Federal government will either need to raise taxes or issue more debt, to give the agencies the money they will need.

https://www.thebalance.com/who-owns-the-u-s-national-debt-3306124

IvanKaramazov

I do not pretend to fully understand macroeconomics. It is, as I implied, one of the weirdest things that modern states involve themselves in. Worse, most of the politicians engaged in it do not understand it either. So you get bizarre shit like the US owing money to China even though the only money that can be traded in is US currency, and the US owing money to its own agencies. It makes you crazy if you look at it enough.

Picklebobble2 · 56-60, M

That's a lot of debt to foreign powers !!!
Was this due to keeping U.S. industrial production markets open or due to pension fund provision ??

TheOneyouwerewarnedabout · 41-45, MVIP

Import a few hundred thousand welfare dependents, that should sort that out surely?

Add a comment...