R_P_A_S
11th October 2011, 20:49
This was emailed to me this morning....
(http://globalpublicsquare.blogs.cnn.com/2011/07/21/who-owns-america-hint-its-not-china/)
(http://globalpublicsquare.blogs.cnn.com/2011/07/21/who-owns-america-hint-its-not-china/)
Who owns America? Hint: It's not China (http://globalpublicsquare.blogs.cnn.com/2011/07/21/who-owns-america-hint-its-not-china/)
Editor's Note: The following piece comes from Global Post, (http://www.globalpost.com/) which provides excellent coverage of world news - important (http://www.globalpost.com/dispatch/news/regions/africa/110629/kordofan-eyewitness), moving (http://www.globalpost.com/dispatch/news/regions/middle-east/egypt/110628/refugees-egypt-united-nations-revolution) and odd (http://www.globalpost.com/globalpost-blogs/weird-wide-web).
By Tom Mucha, Global Post (http://www.globalpost.com/)
Truth is elusive. But it's a good thing we have math.
Our friends at Business Insider (http://www.businessinsider.com/) know this, and put those two principles to work today in this excellent and highly informative little slideshow (http://www.businessinsider.com/who-owns-us-debt-2011-7#hong-kong-1), made even more timely by the ongoing talks in Washington, D.C (http://www.nytimes.com/2011/07/21/us/politics/21fiscal.html). 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 (http://www.businessinsider.com/who-owns-us-debt-2011-7):
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.
For a smart take on how President Obama and House Republicans should end gridlock over debt and deficits, see our new GlobalPost series The Negotiator (http://www.globalpost.com/dispatch/news/business-tech/debt-crisis/110719/Debt-Crisis-Debt-Ceiling-Deficit-Reduction-Strategy), which features Wharton's negotiation guru Stuart Diamond (http://lgst.wharton.upenn.edu/people/faculty.cfm?id=1115).
And to bone up on China's debt — another potentially big global economic headache — check out this interview (http://www.globalpost.com/dispatch/news/regions/asia-pacific/china/110707/china%E2%80%99s-mountain-debt-explained)with brainy-yet-coherent Northwestern University economist Victor Shih, who spoke with GlobalPost's David Case
(http://globalpublicsquare.blogs.cnn.com/2011/07/21/who-owns-america-hint-its-not-china/)
(http://globalpublicsquare.blogs.cnn.com/2011/07/21/who-owns-america-hint-its-not-china/)
Who owns America? Hint: It's not China (http://globalpublicsquare.blogs.cnn.com/2011/07/21/who-owns-america-hint-its-not-china/)
Editor's Note: The following piece comes from Global Post, (http://www.globalpost.com/) which provides excellent coverage of world news - important (http://www.globalpost.com/dispatch/news/regions/africa/110629/kordofan-eyewitness), moving (http://www.globalpost.com/dispatch/news/regions/middle-east/egypt/110628/refugees-egypt-united-nations-revolution) and odd (http://www.globalpost.com/globalpost-blogs/weird-wide-web).
By Tom Mucha, Global Post (http://www.globalpost.com/)
Truth is elusive. But it's a good thing we have math.
Our friends at Business Insider (http://www.businessinsider.com/) know this, and put those two principles to work today in this excellent and highly informative little slideshow (http://www.businessinsider.com/who-owns-us-debt-2011-7#hong-kong-1), made even more timely by the ongoing talks in Washington, D.C (http://www.nytimes.com/2011/07/21/us/politics/21fiscal.html). 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 (http://www.businessinsider.com/who-owns-us-debt-2011-7):
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.
For a smart take on how President Obama and House Republicans should end gridlock over debt and deficits, see our new GlobalPost series The Negotiator (http://www.globalpost.com/dispatch/news/business-tech/debt-crisis/110719/Debt-Crisis-Debt-Ceiling-Deficit-Reduction-Strategy), which features Wharton's negotiation guru Stuart Diamond (http://lgst.wharton.upenn.edu/people/faculty.cfm?id=1115).
And to bone up on China's debt — another potentially big global economic headache — check out this interview (http://www.globalpost.com/dispatch/news/regions/asia-pacific/china/110707/china%E2%80%99s-mountain-debt-explained)with brainy-yet-coherent Northwestern University economist Victor Shih, who spoke with GlobalPost's David Case