Question on our debt to China

[billvon 3,132]

Question for all of you - how much of our debt do you think China holds? And is it going up or down? Just curious as to what people think, since this seems to come up a lot in political speeches.

Pat Buchanan: "We are thus in the position of having to borrow from . . . China and Japan to defend Chinese and Japanese access to Gulf oil . . . To question this is an unpardonable heresy called 'isolationism.' "

Michele Bachmann: On the US debt, ""Hu [Jintao] is your daddy."

Obama: Bush took "out a credit card from the Bank of China in the name of our children, driving up our national debt from $5 trillion for the first 42 presidents . . ."

[quade 4]

The vast majority of the debt is money we owe ourselves.

http://www.youtube.com/watch?v=3ugDU2qNcyg

Pretty much accurate.

quade -
The World's Most Boring Skydiver

[dmcoco84 5]

When the President believes he is speaking privately, he tells our ENEMY, that it is his last election, and after, he will have more flexibility.

When Romney believes he is speaking privately, in response to a question, he says:

"Yeah, it's interesting...the former head of Goldman Sachs, John Whitehead, was also the former head of the New York Federal Reserve. And I met with him, and he said as soon as the Fed stops buying all the debt that we're issuing-which they've been doing, the Fed's buying like three-quarters of the debt that America issues. He said, once that's over, he said we're going to have a failed Treasury auction, interest rates are going to have to go up. We're living in this borrowed fantasy world, where the government keeps on borrowing money. You know, we borrow this extra trillion a year, we wonder who's loaning us the trillion? The Chinese aren't loaning us anymore. The Russians aren't loaning it to us anymore. So who's giving us the trillion? And the answer is we're just making it up. The Federal Reserve is just taking it and saying, "Here, we're giving it.' It's just made up money, and this does not augur well for our economic future.”

But Faux News and the rest of the media only talked about the 47% comment from that video.


China does not need the USA. They have been getting out of US bonds and have been buying tangible assets... gold, land, oil, minerals, ect.

Japan holds most of our debt, after the Federal Reserve.

[billvon 3,132]

>Japan holds most of our debt, after the Federal Reserve.

Currently China holds 8% of our debt, Japan 7.6%.

[beowulf 1]

http://www.youtube.com/watch?v=asRDOhgN70Q&feature=colike

[Kennedy 0]

And yet people laugh and/or call Ron Paul crazy when he talks about the Federal Reserve needing a full audit. (Let alone that the very existence of the Fed is blatantly unconstitutional)

Edit for poorly written post, a bit of a knee jerk reaction, and a complete lack of coffee. Maybe I'll fix the rest later.

witty subliminal message
Guard your honor, let your reputation fall where it will, and outlast the bastards.
1*

[beowulf 1]

You must be confused. The US is spending money like crazy. There is no limit to the money supply. The Fed essentially creates it out of nothing.

But the Fed isn't the biggest creator of money. That privilege goes to all the other banks. It's created through the loan process known as fractional reserve banking.