Who owns America? Hint: It's not China

[Ray]

Who owns America? Hint: It's not China

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.

Who owns America? Hint: It's not China – Global Public Square - CNN.com Blogs

Much is said about US' global debt and how it is China which is calling the shots to the US' future.

This article indicates that it is not China which is in the driving seat, but the Americans themselves.

If this be so why the brouhaha that China is looming over the US debt?

In fact, if the US sinks, China will also sink,but to a lesser extent and so it appears that inspite of China tomtoming about US being in its pocket, it is not so.

In fact, China is already proving to be in dire straits, now that owing to the workers' greed for better pay and perquisites, it has become uneconomical to do business in China, resulting in industries shifting to Vietnam and India.

I have no head for figures. So, can someone who understands this tell us the true picture in simple terms?

 

[ace009]

Much is said about US' global debt and how it is China which is calling the shots to the US' future.

This article indicates that it is not China which is in the driving seat, but the Americans themselves.

If this be so why the brouhaha that China is looming over the US debt?

In fact, if the US sinks, China will also sink,but to a lesser extent and so it appears that inspite of China tomtoming about US being in its pocket, it is not so.

In fact, China is already proving to be in dire straits, now that owing to the workers' greed for better pay and perquisites, it has become uneconomical to do business in China, resulting in industries shifting to Vietnam and India.

Worker's greed? You mean their demand for humane working conditions and human wages? Not to be treated like slaves and not to work like bonded labourers' wages? You mean asking for health-care benefits, especially against occupational hazards? You mean that greed which is driving them to ask for more than two bathroom breaks and more than one meal break in a 12 hour shift of hard manual labor?
Hmmmm - that is indeed SAD!
What is the world coming to, when the "Peoples govermnet" cannot help the rich exploit the poor anymore!
In such times I guess I will have to buy my flip-flops for more than a dollar a pair and pay more for my kids toys than a cup of Starbucks coffee! The horror!

 

[sky]

They may not own america but they own enough to pressurise them on certain matters.

What i don't understand is why india has so much of it's foreign reserves in dollar's . At a time when the dollar is weak.

It's been no secret of gold rising in value for more then 3 year's now ,if more Indian reserves where in gold the RBI would have made a good profit from it. Gold was $600per ounce a few years ago,and rising ....

 

[redragon]

The default of US treasure bills will cause chaos for sure in short-term, the long-term effect remains unknown, that is why China keeps buying it to try to have more control for future purpose.
One thing for sure though, the conclusion of saying China will be hurt the most is laughable, in short or long-term, USA is the one will be hurt the most, we are talking about it's treasure bill and currency and it's people who are holding those the most...

 

[SHASH2K2]

I have been saying this from some time that real holders of american debt are american government arms and subsidiary itself . If USA default it will affect common Americans most. If it defaults china seledctively it will amount to trade war and will openly invite for retaliatory actions and arbitration as well.

 

[redragon]

And China today is holding the largest producing capability in the world, my money is on China for the long-term effect if the USD were to crash now. But I am not very sure about if I can win, just it looks like a highest posibility at this time. Who nows? Maybe if the crash happened every rich man and scientist emmigrate to Australia or Canada and push them to the top in the coming 30-40 yrs.

 

[Blackwater]

Saudis owns Amreeeka as far as i know.....

 

[redragon]

Saudis owns Amreeeka as far as i know.....

Hmm, Is that the reason Saudi provided the largest share of Terrorists? they like to attack their own assets? Or they are fighting a civil war???? Confused. .

 

[Ray]

The default of US treasure bills will cause chaos for sure in short-term, the long-term effect remains unknown, that is why China keeps buying it to try to have more control for future purpose.
One thing for sure though, the conclusion of saying China will be hurt the most is laughable, in short or long-term, USA is the one will be hurt the most, we are talking about it's treasure bill and currency and it's people who are holding those the most...

An interesting thought.

Since there will be a recession, less with be the demand for products and China banks heavily on exports.

If the US and the West have a tacit understanding to not buy anything Chinese, what will be the outcome?

The Chinese economy will be badly hit. It will render many to fold up and many becoming unemployed. After a decade of relative luxury, then suddenly becoming poor, it will have a serious social and political consequence. The CCP will do nothing to have such a volatile situation on it s hand.

If alongside the US (and they are capable of doing this) fan the rebellion in Xinjiang and Tibet, with a small confrontation in the South China Sea, imagine the money that China will have to waste to quell these rebellions and also combat it out in the South China Sea, even if it is minor confrontation.

Long term or short term, the international situation does not appear comfortable.

 

[Blackwater]

Hmm, Is that the reason Saudi provided the largest share of Terrorists? they like to attack their own assets? Or they are fighting a civil war???? Confused. .

You are wrong, its your foster son Pakistan who provide pure breed of terrorist in the world. they have the largest share of attacking there own assets. Look at there economic situation, dilapidated infrastructure,railway am i missing something ??

 

[Ray]

Pakistan is the factory, the financier is KSA.

 

[sandeepdg]

An interesting thought.

Since there will be a recession, less with be the demand for products and China banks heavily on exports.

If the US and the West have a tacit understanding to not buy anything Chinese, what will be the outcome?

The Chinese economy will be badly hit. It will render many to fold up and many becoming unemployed. After a decade of relative luxury, then suddenly becoming poor, it will have a serious social and political consequence. The CCP will do nothing to have such a volatile situation on it s hand.

If alongside the US (and they are capable of doing this) fan the rebellion in Xinjiang and Tibet, with a small confrontation in the South China Sea, imagine the money that China will have to waste to quell these rebellions and also combat it out in the South China Sea, even if it is minor confrontation.

Long term or short term, the international situation does not appear comfortable.

Sir, as of now and even in the near future, there's no country on the planet, that can match the massive industrial infrastructure which makes production all types of products cheap, as is present in China. So whether we like it like it or not, the world will continue to buy from China at least for a considerable period of time, since no matter how expensive the labor costs in China become in the future, they will still be cheaper than anything in the west, I suppose.

 

[Blackwater]

Pakistan is the factory, the financier is KSA.

Well my comment about saudi owns ammerica is based on an documentry by BBC just after 9/11 happened. Try to find out in youtube will post

 

[redragon]

You are wrong, its your foster son Pakistan who provide pure breed of terrorist in the world. they have the largest share of attacking there own assets. Look at there economic situation, dilapidated infrastructure,railway am i missing something ??

I think you did, Saudi's citizens stand for high percentage of Al qaeda members. and their beloved and late leader: Bin was a Saudi's citizen as well. Pakistan on the other hand is still the ally in anti-terrorism according to US of A.

 

[redragon]

An interesting thought.

Since there will be a recession, less with be the demand for products and China banks heavily on exports.

If the US and the West have a tacit understanding to not buy anything Chinese, what will be the outcome?

The Chinese economy will be badly hit. It will render many to fold up and many becoming unemployed. After a decade of relative luxury, then suddenly becoming poor, it will have a serious social and political consequence. The CCP will do nothing to have such a volatile situation on it s hand.

If alongside the US (and they are capable of doing this) fan the rebellion in Xinjiang and Tibet, with a small confrontation in the South China Sea, imagine the money that China will have to waste to quell these rebellions and also combat it out in the South China Sea, even if it is minor confrontation.

Long term or short term, the international situation does not appear comfortable.

Interesting thinking, will you be the one to convince all people from developed world to pay higher price on the staff they are using on daily basis, especially when the unemployment rate is 10%+? If it's so easy like what you put, Obama would have done this long time ago, don't be naive, you should be better than that.

 

[SHASH2K2]

Interesting thinking, will you be the one to convince all people from developed world to pay higher price on the staff they are using on daily basis, especially when the unemployment rate is 10%+? If it's so easy like what you put, Obama would have done this long time ago, don't be naive, you should be better than that.

If USA default there will be revaluation of all major currencies in the world. DO you think chinese currency will remain undervalued the way Government has managed them? answer is no and that will make Chinese export costlier.

 

[redragon]

and the so call USA and West have their own agenda, it's true they don't like China, but that does not mean they won't stand along side China from time to time for their own interest. Till now the biggest conflict is still between USD and Euro, If you miss this one, you are not qualified to talk about geographic politics.

 

[redragon]

If USA default there will be revaluation of all major currencies in the world. DO you think chinese currency will remain undervalued the way Government has managed them? answer is no and that will make Chinese export costlier.

But still in 5-10 yrs I don't see any country to replace China in the chain, those foundations laid down are not easy to build over night, but who knows in longer term, maybe USA will recover after hard working.

 

[The Messiah]

If the yanks default...then it will effect the entire world.

But we'll be the least affected by it.

 

[ace009]

Hmm, Is that the reason Saudi provided the largest share of Terrorists? they like to attack their own assets? Or they are fighting a civil war???? Confused. .

Dude - you should understand the following about Saudi Arabia -

1. The Saudis are an extremely tiered society - There is the royal family and their relatives (the top tier, Billionaires), there are the other Seikhs (multi-millionaires, who are like middle age European noblemen), there are the middle-class Saudis (who have some money by Saudi standards, but are rich compared to most third world nations) and then there are the workers - mostly immigrant, with very little money.

2. The Royal family and relatives holds most of the debt for USA. The other Seikhs hold some US debt too and are supporters of Wahabi Islam. But the Saudi middle class does NOT hold US debt, are VERY interested in spreading Wahabi Islam.

3. The Royal family and their relatives cozy up to USA and western friendship (to the extent that suits their purposes). The Seikhs have foot in both sides - they invest in the USA for profit, but they also spend money on the spread of their version of Islam, mostly to stay popular in the country so that the rest of the country does not go against them. The Saudi middle class also put money into Islamic "charities" which funnel that money to terrorist organizations.

4. So, in effect, there is a "civil war" - not open, not fought with arms, but fought with money and ideas.

Get the idea?