Who owns America? Hint: It's not China

[Playinghardball]

Source: CNN

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.

More at: http://globalpublicsquare.blogs.cnn.com/2011/07/21/who-owns-america-hint-its-not-china/

[FirstLight]

1. wow, just wow

so in effect, we are bankrupting ourselves?


what madness...

[newspeak]

2. and here I was going to say Great Britain owns a lot of property

So, the country actually owes Americans more money, that they seem to not want to pay.

[Poll_Blind]

3. Well, yeah, but the difference is the American people have little control over...

...those purchases. The Chinese have power to exert quite a bit of force based on their willingness to soak up that debt or not: They have a choice.

Same with Japan. For instance, after the great Japanese earthquake the Yen began to soar against the dollar for a short period of time. Why? And especially why in such circumstances? Because the Japanese could trade in those treasury instruments to get much-needed cash.

The American people are not in a similar position of power at all. American legislators make those decisions, and not out of the same financial interests for the purchasers as the Chinese or Japanese, for instance, do.

PB

[Bonhomme Richard]

4. "Caribbean banking centers" is that code for....................

large American corporations? Is that one of the reasons they seem to be calling the shots?

[Armstead]

5. That awful Social Security Trust Fund -- That's the real Simon LeGree here

Those nasty old people who want their money back. They're the real cause of our problems.

(yes, insert sarcasm tag here)

[dmallind]

6. tried telling people this almost exactly a year ago..

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=385&topic_id=489424&mesg_id=489446

didn't stop almost all of DU byuying the conventional wisdom since then. Neither will this. Until Kucinich or Sanders or Olbermann or Stewart or Uygur or Maddow says it, few here listen or care.