If you are wondering who holds the most US debt, here is a list compiled by CNBC.
15: Luxembourg – $104.2 Billion
14: Depository Institutions – $107.3 Billion (commercial banks, savings banks, credit unions)
13: Russia – $119.9 Billion
12: Insurance Companies – 126.4 Billion
11: Brazil – 139.8 Billion
10: Caribbean Banking Centers – 189.7 Billion
9: Oil Exporters – $191 Billion
8: United Kingdom – $214 Billion
7: Pension Funds – $465.4 Billion
6: State and local governments – $522.7 Billion
5: Other Investors – $629.7 Billion (“other” refers to individuals, government sponsored enterprises, brokers and dealers, bank personal trusts, estates, corporate and non-corporate businesses)
4: Japan – $711.8 Billion
3: China – $776.4 Billion
2: Mutual Funds – $769.1 Billion
1: Federal Reserve and Intergovernmental Holdings – 4.785 Trillion
When I found this list on CNBC, the first thing that crossed my mind was how ironic it is that the countries who were amongst the biggest borrower from the US (China and Brazil) are now the biggest creditors. I also remembered a prediction of the US disintegration in 2010 by a Russian professor who was a KGB analyst. In his prediction, he said that some parts of the US was going to be under China, which of course was laughed at by the public.
However, as I found this list on CNBC, I thought that if the prediction of the Russian professor was correct, we know how it could actually come to pass. With the dollar dropping against the Euro and China being the worlds’ largest debt holder of America, and Russia calling out for a new world reserve currency, there may be a chance that China will have a lease on the American future.
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2 Responses
It is quite shameful that USA boasts itself to be the richest and most powerful country, yet all the money it has is borrowed money. USA cannot take any concrete actions against these countries even if it has disagreements with them because of the threat imposed that they will sell these bonds. If you consider the amount of money these foreign governments have put in US stock market and Ownership of companies, the numbers above will look tiny. You can see very interesting graphs at perotcharts.com .
Posted on October 7th, 2009 at 2:46 pm
[...] At this point, it seems that everybody is starting to get worried. Foreign investors who are basically financing the US debt are eager to see signs that the government will finally regain control over its budgets. These foreing investors include China and Brazil, who are two of the top 15 holders of the US national debt. [...]
Posted on October 18th, 2009 at 2:20 am
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