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US government's foreign debt hits record $5.29 trillion [Copy link] 中文

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Post time 2012-8-21 16:04:53 |Display all floors
US government's foreign debt hits record $5.29 trillion
Sat Aug 18, 2012 3:30PM GMT






Jobless American citizens


The money the U.S. government owes to foreign entities rose to a record $5.2923 trillion in June, according to data released by the U.S. Treasury.

In May, the U.S. Treasury had owed $5.2581 trillion to foreign entities. On net, in June, the U.S. government borrowed an additional $34.2 billion from foreign entities in order to fund U.S. government operations.

The U.S. government’s indebtedness to foreign interests has grown by 72.3 percent during President Barack Obama’s term in office. In January 2009, when Obama was inaugurated, the U.S. government owed $3.0717 trillion to foreign entities, according to the Treasury Department. That has increased by $2.2206 trillion—or 72.3 percent—to the record $5.2923 trillion.

Entities in the People’s Republic of China remain the largest holders of U.S. government debt. Entities in Japan, however, are on track to eclipse the Chinese as the top holders of U.S. government debt. cnsnews.com

FACTS & FIGURES

In June, the Chinese held $1.1643 trillion in U.S. government debt, up slightly from the $1.1640 trillion in U.S. government debt the Chinese held in May. However, Chinese ownership of U.S. government debt hit an historical peaked of $1.3149 trillion in July 2011 and has been on a generally downward trend since then. cnsnews.com

Entities in Japan, by contrast, have been consistently increasing their ownership of U.S. government debt. In June, the Japanese owned $1.1193 trillion in U.S. debt. In May, they owned $1.1089 trillion in U.S. debt. A year ago, in June 2011, the Japanese owned only $881.5 in U.S. government debt. cnsnews.com

The list of nation that have helped out the U.S. doesn’t end there though: Brazil, Taiwan, Russia and the UK are also towards the top of the roster, which goes on to cite a substantial sum of money borrowed from the countries of India, Italy, South Africa and Peru, among others. RT

Should the United States’ debt to foreign holders continue at the current rate, America could expect to owe its allies over $9 trillion in just another few years.

When Barack Obama took office in January 2009, total U.S. government debt stood at about $10 trillion. Since then, more than $5.5 trillion has been added to the national debt, which is about to hit $16 trillion. ocregister.com



DT/HJ



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Post time 2012-8-21 16:28:56 |Display all floors
They've never defaulted yet though.
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Post time 2012-8-23 03:35:00 |Display all floors

RE: US government's foreign debt hits record $5.29 trillion

St_George Post time: 2012-8-21 15:28
They've never defaulted yet though.

Is like a person who says: Heh, I contacted AIDS in the advance state but I am not dead yet.
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Post time 2012-8-23 06:00:46 |Display all floors
sansukong Post time: 2012-8-23 03:35
Is like a person who says: Heh, I contacted AIDS in the advance state but I am not dead yet.

Thats a bad analogy, nobody is oblged to buy US bonds-they do so in their own interests.

That includes China.
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Post time 2012-8-23 06:30:04 |Display all floors
It’s now been one year since Standard and Poors downgraded the debt of the USA from AAA to AA+. If you recall, many pundits were saying this would be an earth shattering event and that it was a sign of much bigger problems to come.  Some even said it could cause a Eurostyle debt spiral in the USA where bond vigilantes attack and yields surge causing a funding crisis and even a potential default.  But what’s actually happened?  As you can see in figure 1 below yields have actually continued to move substantially lower.  In fact, yields are a full 1% lower than the 2.6% yield that we saw before the downgrade.  In other words, the downgrade has had zero impact.Some might still be wondering why this is?  The reason is simple.  There is no risk of the USA having a funding crisis since it can always procure funds via taxes and bond sales.  That’s right, the government has no solvency risk.  It has only an inflation risk.  As I recently described:

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Post time 2012-8-23 07:58:51 |Display all floors


America Heading Towards a Collapse Worse Than 2008 AND Europe! Says Peter Schiff - Yahoo Finance

http://www.youtube.com/watch?v=GvQ2_hmtz18&feature=player_detailpage



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Post time 2012-8-23 09:40:14 |Display all floors

RE: US government's foreign debt hits record $5.29 trillion

St_George Post time: 2012-8-23 05:00
Thats a bad analogy, nobody is oblged to buy US bonds-they do so in their own interests.

That inc ...

I think the analogy is as good as any. When a person is living on borrowed time and even if he/she is still kicking, it does not mean he/she won't knock off, because his/her conditions can only get worse! Exactly what Peter Schiff describes in his video.
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