Is the US in debt up to its eyeballs to China or.....?

Question

does the US allow China as well as many other countries such as the EU and Japan to save money in its investment bank (US treasury and Stock Market)?

Which is a more correct way of looking at this?

Why do you think everybody wants to store their money in the US if the US economy is really that unstable? And China is going to foreclose on it ?
Its rubbish. (media hype)
Big question for you guys.

Answer 1

The US carries a debt burden of roughly 60% of GDP. This is comparable with most other Western economies. About 50-60% of this debt is held inside the United States (ever bought a government bond?) and some of it is actually made up of loans from one government agency to another.

The rest tend to be T-bill holdings by foreign countries; the largest 2 are China & Japan (in order to keep their currencies artificially low).

And they can't "foreclose" on the debt since we keep making interest payments. And if we anyone thought we would, they wouldn't loan the US money.

Answer 2

There's no such thing as China "foreclosing" - The Chinese central bank purchases Treasurys at auction. Treasurys are not puttable - you can have the Fed sell them on your behalf at auction, but if you dump a bunch of Treasurys that will only de-value the Treasurys you hold onto.

Answer 3

Good comments above. I'm not aware of any credible person claiming the US economy "unstable" -- it's actually doing very well and consistently is by far the best economy in the developed world.

And no, China cannot come repo our car or have debt collectors call us up all day long. It's annoying when morons talk vaguely of how threatening it is that China buys our debt. China gives us cold hard cash and we give them a slip of paper. Who comes out ahead in that deal?

Answer 4

No, surely, that's the different, it restricts, limits and controls China. you spot, China now has lots human beings debt... Do they technically have the potential to screw the US, specific yet doing that now could be like taking pictures themselves interior the foot. China's prosperity is now tied to US prosperity. that is not any longer in China's maximum suitable pastimes to work out the US bypass down... by way of US debt they now own plus the producing facility/production orders which will suff under a down and out US financial device.

Answer 5

yes china does own the usa every penny they get they buy in to the usa the chinese own so much of the usa if they forclose the usa will be stuffed but yet again they own most of the world now everything is made in china.
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