China Doesn’t OWN the US

Tuesday, March 27, 2012 8:33
Posted in category The Big Picture

Maybe it’s the 2012 election cycle, maybe it’s the lingering effects of the Great Recession, or  need to stop reading the comments of popular blogs, but I am beginning to see a lot more comments about how “China owns the US”, and that firms and politicians are responsible for doing something about it

Comments (and commentary) that are not only false, but are just plain ignorant of the facts

From Wikipedia’s US Public Debt page we know that China is a minority shareholder (of US debt)

As of January 2011, foreigners owned $4.45 trillion of U.S. debt, or approximately 47% of the debt held by the public of $9.49 trillion and 32% of the total debt of $14.1 trillion.[50] The largest holders were the central banks of China, Japan, the United Kingdom and Brazil.[52] The share held by foreign governments has grown over time, rising from 13% of the public debt in 1988[53] to 25% in 2007.[54]

As of May 2011 the largest single holder of US government debt was China, with 26 percent of all foreign-held US Treasury securities (8% of total US public debt).[55] China’s holdings of government debt, as a percentage of all foreign-held government debt, have decreased a bit between 2010 and 2011, but are up significantly since 2000 (when China held just 6 percent of all foreign-held U.S. Treasury securities)

8%… not exactly ownership… and in 2017, when the surplus of Social security is expected to turn into a deficit, one would think that politicians would begin focusing on that instead

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One Response to “China Doesn’t OWN the US”

  1. Sam Reeves says:

    April 8th, 2012 at 8:18 am

    That’s a good point, but it doesn’t just come down to U.S debt. There are quite a few factors that lead people to believe the U.S is somewhat owned.

    The country with the largest reserves of U.S dollars in the world is China. What this means in real terms is that if China did ever want to totally destroy the U.S economy it could simply dump all the dollars on the market at one time, creating massive devaluation of the dollar in one instant; not that they have to by instead choosing the ‘slow-death’ angle of a trade war by keeping the Yuan somewhat pegged to the dollar so the U.S can gain now trade advantage.

    The U.S.A’s influence is gradually less and less over China as it continues a runaway power-play particularly in Asia.