Wandering China

An East/West pulse of China's fourth rise from down under.

Who owns America? Hint: It’s not China [CNN]


Useful to have some perspective; that China owns most of America’s debt is something bandied about regularly in the media, and in the study of international relations. So it seems that China’s $1.16 trillion held constitutes 8 percent. In comparison, US households hold $959.4 billion, at 6.6 percent. Also, check out Business Insider’s slideshow – The TRUTH About Who Really Owns All Of America’s Debt

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Who owns America? Hint: It’s not China
Source – CNN Global Public Square, July 21, 2011

Editor’s Note:
 The following piece comes from Global Post, which provides excellent coverage of world news – importantmoving 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.

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Filed under: Beijing Consensus, Charm Offensive, Chinese Model, Communications, Domestic Growth, Economics, Education, Finance, Government & Policy, Influence, International Relations, Media, Nationalism, Politics, Public Diplomacy, South Korea, Strategy, The Chinese Identity, The construction of Chinese and Non-Chinese identities, Trade, U.S.

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