US debt hits 14 trillon.Dollars

[Tshering22]

Don't think US is actually going to be repaying any of that amount. Simply put, no one really has the guts to make them do it. That's the simple reason behind their relentless pursuit of strategic interests despite all these debt reports.

 

[Huan]

You can believe it or not... but I hope that the American economy stays strong.

You are our largest customer after all. No one else can buy our products in such volume.

If you guys crash, we will be screwed as well.

Pass me more wine then. ^^

 

[ramu]

You can believe it or not... but I hope that the American economy stays strong.

You are our largest customer after all. No one else can buy our products in such volume.

If you guys crash, we will be screwed as well.

finally someone admits the truth

 

[TruthSeeker]

I also don't know why white Americans think there's a dollar peg. There's been no dollar peg in China for half a decade.

More gratuitous racism from Mr. below-freezing.

 

[TruthSeeker]

Don't think US is actually going to be repaying any of that amount. Simply put, no one really has the guts to make them do it. That's the simple reason behind their relentless pursuit of strategic interests despite all these debt reports.

The majority of the $ 14T is owed to other Americans. All will be repaid, but with dollars having much less value, due to inflation, then when the lender purchased his US Treasury bond.

 

[TruthSeeker]

China holds eight percent of US debt-Locke
Updated: 2011-05-27 08:38

WASHINGTON - China holds about 8 percent of US government debt, roughly a third of that held by foreign entities, while 70 percent is held US by domestic investors, US Commerce Secretary Gary Locke said on Thursday.

"China's hold or ownership is only 8 percent of our outstanding debt and in no way does China's position influence US foreign policy," Locke told a Senate Foreign Relations Committee confirmation hearing on his nomination to be the next US ambassador to China.

Locke, nominated by President Barack Obama in March, made his remarks during a confirmation hearing before the committee, which is expected to support Locke. The full Senate is then expected to confirm him.

If confirmed, Locke would become the first Chinese-American to serve in the critical post of US ambassador to China, where his parents were born.

China holds eight percent of US debt-Locke

 

[TruthSeeker]

China Favors European Debt Over US
By Paul Quintaro, Benzinga Staff Writer, June 21, 2011 11:22 AM

Apparently, China is more confident in Europe than the United States, with regards to respective debt situations.

For the first four months of 2011, China appears to have purchased more European debt than U.S. dollar assets, according to Market Watch. Is China more concerned with the fiscal situation in the United States than in Europe?

The actions on the part of the Chinese might be interpreted as a powerful warning. China is clearly diversifying away from the U.S. dollar. Perhaps the U.S. dollar will cease to be a safe-haven asset in the future?

Still, it is worth noting that for the first four months of the year, activity in Greece was relatively subdued. It was not until May that tensions truly began to spillover. Additionally, the Chinese did not diversify away from total U.S. dollar assets, instead shifting only at the margin.

In late May, Nassim Taleb—noted financial commentator and author of The Black Swan—characterized the debt situation in the U.S. as being "worse than Greece's." The actions of the Chinese might indicate that they are of similar mind.

For now, the safe-haven dollar play appears to be intact. Over the past few weeks, when negative news about Greece was released, the U.S. dollar index tended to rally, and when the news favored a resolution to the Greek crisis, the U.S. dollar index tended to fall.

With China shifting away from the U.S. dollar, will that trade continue to hold?

China Favors European Debt Over US | Benzinga.com

 

[cheekybird]

the best option for usa would be to stop all the wars.

agree plus they should mind their own business in future.

 

[EagleOne]

China Favors European Debt Over US
By Paul Quintaro, Benzinga Staff Writer, June 21, 2011 11:22 AM

Apparently, China is more confident in Europe than the United States, with regards to respective debt situations.

For the first four months of 2011, China appears to have purchased more European debt than U.S. dollar assets, according to Market Watch. Is China more concerned with the fiscal situation in the United States than in Europe?

The actions on the part of the Chinese might be interpreted as a powerful warning. China is clearly diversifying away from the U.S. dollar. Perhaps the U.S. dollar will cease to be a safe-haven asset in the future?

Still, it is worth noting that for the first four months of the year, activity in Greece was relatively subdued. It was not until May that tensions truly began to spillover. Additionally, the Chinese did not diversify away from total U.S. dollar assets, instead shifting only at the margin.

In late May, Nassim Taleb—noted financial commentator and author of The Black Swan—characterized the debt situation in the U.S. as being "worse than Greece's." The actions of the Chinese might indicate that they are of similar mind.

For now, the safe-haven dollar play appears to be intact. Over the past few weeks, when negative news about Greece was released, the U.S. dollar index tended to rally, and when the news favored a resolution to the Greek crisis, the U.S. dollar index tended to fall.

With China shifting away from the U.S. dollar, will that trade continue to hold?

China Favors European Debt Over US | Benzinga.com

Here's the list of European countries by external debt as % of GDP:
Country % of GDP
Luxembourg 4636%
Ireland 1224%
Norway 861%
UK 398%
Switzerland 364%
Netherlands 344%
Belgium 322%
Denmark 274%
Sweden 241%
Austria 226%
Portugal 201%
Finland 200%
France 188%
Greece 165%
Spain 157%
Germany 143%
Italy 124%

Good luck to China with its diversification of debt holdings to continue manipulating its currency.

http://en.wikipedia.org/wiki/List_of_countries_by_external_debt

 

[temujin]

I think the OP is getting a bit carried away here..Simply put, US cannot default on its debt. The reason being that its the only country in the world that issues all its debt in its own currency i.e. USD. If it runs out of money, it`ll simply print a bit more

Read the following to know why..

Bretton Woods system - Wikipedia, the free encyclopedia

 

[lem34]

There was talk about the brics countries that the status quo is not acceptable in regards the US$ being the reserve currency. Th problem that dollar holders have is that they can not get rid of their holdings overnight as they stand to lose because dollar will drop like a stone and their own holdings would be worthless. Having said that it is happening slowely and is inevitable. I reckon 5 to 10 years and the dollar will finished barr the shouting as a reserve currency and this will have the most far reaching consequences and signals the ultimate destruction of amrican adventures around the world. Ameica will have problems in feeding their own people and petrol will go to $50 plus.

 

[casual]

us should just get rid of medicare all together. i don't feel like paying for old people anymore.

 

[Anonymous user]

The majority of the $ 14T is owed to other Americans. All will be repaid, but with dollars having much less value, due to inflation, then when the lender purchased his US Treasury bond.

How's the government going to manage that considering the current spending is already at the GDP level?

 

[Dalai Lama]

Here's the list of European countries by external debt as % of GDP:

Ireland 1224%

Damn, we're in real trouble...

 

[Anonymous user]

Damn, we're in real trouble...

If anything happens I bet the sale of this particular product will go up