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I posed the earlier question about the $5.5 trillion US national deficit. Yes...I KNOW about Treasury bills, etc. What I am interested in knowing is the identity of the people who hold the "paper" on these massive debts. Who are they? What nation or nations? Who is in the the majority?
$5.5 trillion U.S. alone???...plus many, many other countries. Who has that kind of money to lend? Who has that kind of power? When is too much debt...too much debt???

2007-09-27 22:00:22 · 1 answers · asked by John Mc 6 in Business & Finance Credit

1 answers

An investor can buy US Treasury obligations. A lot of of them held by Japanese Insurance companies. The central bank of China holds dollars (in the form of treasury bonds) as its national reserve. People that export to the US get paid in dollars. They convert some to their local currency to pay local workers and suppliers, but the rest can be used to by dollar denominated investments like US Treasury issues. (Think about Chinese exporters and oil exporters, here.)

2007-09-28 10:17:43 · answer #1 · answered by Ted 7 · 0 1

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