Who owns America? Hint: It's not China Editor's Note: The following piece comes from Global Post, which provides excellent coverage of world news - important, moving and odd. By Tom Mucha, Global Post Truth is elusive. But it's a good thing we have math. Our friends at Business Insider know this, and put those two principles to work today in this excellent and highly informative little slideshow, made even more timely by the ongoing talks in Washington, D.C. 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: 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, which features Wharton's negotiation guru Stuart Diamond. And to bone up on China's debt — another potentially big global economic headache — check out this interview with brainy-yet-coherent Northwestern University economist Victor Shih, who spoke with GlobalPost's David Case.
I don't know about America owning America when its a debt being discussed. More like, are we on the verge on becoming a banana Republic. 4 years ago $1.00 AUD bought .58 USD. Now $1.00 AUD buys $1.08 USD. Terrible for America, great for foreigners. In all of history, every great empire has fallen. Every one. We have to fight to take this country back -kick all the viruses out, do a defrag, and reboot!
Interesting post. Perceptions were similarly skewed in the 1980s when the Japanese were buying up American real estate, particularly some high profile buildings. The perception was that the Japanese owned a lot, when really they owned much less than investors of other nationalities. If I recall correctly, the Dutch owned considerably more than the Japanese did, but there was virtually no discussion of it. I think that perceptions are often driven by our perceptions of the state in question rather than the empirical reality. In this case, a big part of the perception is that the US is in decline, at least relative to China, whose power is perceived as growing. Under the circumstances, it's not surprising that our China-related fears magnify the reality of how much debt China owns.
The United States of America is nothing more than a degenerate gambler who can’t pay off it’s bookies, so it goes around robbing Peter to pay Paul. smh
It's bad for Americans who travel abroad, but it's not a negative across the board. Since countries that import our stuff pay for it in US dollars, the declining exchange rate makes our exports (goods and services) really cheap, which makes them more appealing abroad.
Haha, being a computer geek I like your analogy. I've been reading about the FairTax and, will later post a thread to find out what you guys/gals opinions are on it.
