with the US debt deadline looming I am watching with eagerness whether there will be a compromise in the US House between the Democrats and the Republicans on how best they will deal with the debt ceiling. For most of us outside the USA, we probably think that this is not our problem even if the USA defaults on its debt repayments. As a consumer, I probably will be happy if the US dollar goes down in value as I will have more dollars in my pocket with the favorable exchange rates which means more purchasing power but the scarier part will be if the USA starts to spend less, the world's economy might shrink there might be economic collapse and the domino effect might reach the rest of the world. That will be scary. In the USA, the republicans mostly have been clamoring that the USA is spending on borrowed money from China. I try to find out if this is indeed true. But the following is what I found:
While China and plenty of other foreigners own substantial amounts, it's really the Americans who hold most of America's debt.
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)
