Clinton likened it to a NAZI rally,Iconic Dr. Phil brings the Receipts

[Celsius]

Can someone explain to me how this debt works? If China owns most of US debt aren't American taxpayers effectively paying interest payments to China?

 

Edited 10 hours ago by Celsius

[Yellowtail]

2 minutes ago, Celsius said:

Can someone explain to me how this debt works? If China owns most of US debt aren't American taxpayers effectively paying interest payments to China?

 

First, while is one of our largest creditors China does not own most of our (US) debt. I think Japan is our largest creditor and China second. 

 

But yes, the US spends more now to service the debt than we spend on defense. 

 

 

[simple1]

Yes, PRC Yuan is pegged to the US dollar. As of April 2024, the five countries owning the most US debt are Japan ($1.1 trillion), China ($749.0 billion), the United Kingdom ($690.2 billion), Luxembourg ($373.5 billion), and Canada ($328.7 billion. Plus US consumers pay the additional tax on PRC imports to the USA - tariffs. as well as subsidies to US farmers due to PRC tariffs on US agricultural products e.g. soya.  trump's tariffs on PRC have failed in their purpose to reduce PRC imports. Biden keeps them in place:

 

https://edition.cnn.com/2022/01/26/politics/china-tariffs-biden-policy/index.html to defend 

Edited 10 hours ago by simple1

[Yellowtail]

2 minutes ago, simple1 said:

Yes, PRC Yuan is pegged to the US dollar. As of April 2024, the five countries owning the most US debt are Japan ($1.1 trillion), China ($749.0 billion), the United Kingdom ($690.2 billion), Luxembourg ($373.5 billion), and Canada ($328.7 billion. Plus US consumers pay the additional tax on PRC imports to the USA - tariffs. as well as subsidies to US farmers due to PRC tariffs on US agricultural products e.g. soya.  trump's tariffs on PRC have failed in their purpose to reduce PRC imports. I guess Biden keeps them in place to defend from trump political attacks calling him Marxist etc

[simple1]

1 minute ago, Yellowtail said:

snipped for brevity

Once has to keep trump in mind regards US debt to PRC due to his imposition of tariffs and his trade war with PRC.

[NoDisplayName]

22 minutes ago, Celsius said:

Can someone explain to me how this debt works? If China owns most of US debt aren't American taxpayers effectively paying interest payments to China?

 

 

That's how bonds work.  The Chinese are giving the US government low interest loans. 

 

Chinese taxpayers are subsidizing our national debt, allowing us to bankrupt ourselves.

 

https://usadebtclock.com/

[Jim Blue]

How come a s^×%%y country like the UK, to quote Trump , lent so much to the USA   ?

[KhunLA]

41 minutes ago, Yellowtail said:

First, while is one of our largest creditors China does not own most of our (US) debt. I think Japan is our largest creditor and China second. 

 

But yes, the US spends more now to service the debt than we spend on defense.

Yes, and probably correct, along with the govt is also a big holder of it's own debt.  Borrowing from themselves ... think Social Security, and how they drained that fund to near insolvency.

 

Still in the print more money mode.   Debt is on paper, and as long as nobody calls you on it, then you're not bankrupt.  

 

JFK wanted to do away with Central Banking & Fed ... shh

... we all know how that turned.

 

ME ... ain't paying and haven't paid taxes most of the past 24 years.  Think I got all mine back, or will before I crap out.   Like bein a blight on society 

[candide]

1 hour ago, Jim Blue said:

How come a s^×%%y country like the UK, to quote Trump , lent so much to the USA   ?

For the reason you just evoked. Some UK investors see it as a safer investment. In particular, the share of UK debt holders increased after the Brexit referendum.

[herfiehandbag]

3 hours ago, Jim Blue said:

How come a s^×%%y country like the UK, to quote Trump , lent so much to the USA   ?

Because we are fools, or to be more accurate those who control our national wealth, are fools!

 

It's rather inexplicable, like the UK Government paying pensions into overseas accounts via an American Bank. It is touted as smoother and more reliable, but how and why the 6th largest economy in the world, and a major global banking player, needs to do this is a tad strange. I am personally keeping a very close eye on the dollar, if the US economy tanks then I will return to having it paid into my UK bank, and put up with the hassle of transferring money.

Edited 6 hours ago by herfiehandbag

[candide]

56 minutes ago, herfiehandbag said:

Because we are fools, or to be more accurate those who control our national wealth, are fools!

 

It's rather inexplicable, like the UK Government paying pensions into overseas accounts via an American Bank. It is touted as smoother and more reliable, but how and why the 6th largest economy in the world, and a major global banking player, needs to do this is a tad strange. I am personally keeping a very close eye on the dollar, if the US economy tanks then I will return to having it paid into my UK bank, and put up with the hassle of transferring money.

The use of the word "country" in the OP can be misleading. In some countries It's mainly the State buying U.S. debt (ex. China), in countries such as UK it's mainly private investors (banks, edge funds, companies, etc...)

[Captain Flack]

A troll post offering nothing but a pointless meme has been removed

[herfiehandbag]

2 hours ago, candide said:

The use of the word "country" in the OP can be misleading. In some countries It's mainly the State buying U.S. debt (ex. China), in countries such as UK it's mainly private investors (banks, edge funds, companies, etc...)

Who still, effectively, control our national wealth.

 

One would have hoped that the 2008 financial crisis, which was hugely exacerbated by the UKs corporate finance sectors exposure to bad debt in the US, would have warned against the practice.

 

It is of course a massive simplification, but if banks, hedge funds and companies are hit hard by a significant draw down in the US economy, then they will seek to repair their funds which will impact upon UK business, jobs and prosperity.

Edited 2 hours ago by herfiehandbag

[Yellowtail]

Just now, herfiehandbag said:

Who still, effectively, control our national wealth.

 

One would have hoped that the 2008 financial crisis, which was hugely exacerbated by the UKs corporate finance sectors exposure to bad debt in the US, would have warned against the practice.

We can't print it fast enough,,,

[herfiehandbag]

3 minutes ago, Yellowtail said:

We can't print it fast enough,,,

Hmm, get the Chinese to print it for you!

[Yellowtail]

3 minutes ago, herfiehandbag said:

Hmm, get the Chinese to print it for you!

Shhhhhhhh

[candide]

 

31 minutes ago, herfiehandbag said:

Who still, effectively, control our national wealth.

 

One would have hoped that the 2008 financial crisis, which was hugely exacerbated by the UKs corporate finance sectors exposure to bad debt in the US, would have warned against the practice.

 

It is of course a massive simplification, but if banks, hedge funds and companies are hit hard by a significant draw down in the US economy, then they will seek to repair their funds which will impact upon UK business, jobs and prosperity.

U.S. treasury securities are considered as quite safe. Nothing to compare with the bad subprimes debt. The main risk is the $ exchange rate.

There is no particular reason why the U.S. economy would be more at risk than the U.K economy. It's likely the opposite case. And if there's a crisis in the U.S., it will propagate to U.K. anyway.

Edited 2 hours ago by candide

[Yellowtail]

23 minutes ago, candide said:

 

U.S. treasury securities are considered as quite safe. Nothing to compare with the bad subprimes debt. The main risk is the $ exchange rate.

There is no particular reason why the U.S. economy would be more at risk than the U.K economy. It's likely the opposite case. And if there's a crisis in the U.S., it will propagate to U.K. anyway.

Yeah, keep printing

[chiang mai]

8 hours ago, simple1 said:

Yes, PRC Yuan is pegged to the US dollar. As of April 2024, the five countries owning the most US debt are Japan ($1.1 trillion), China ($749.0 billion), the United Kingdom ($690.2 billion), Luxembourg ($373.5 billion), and Canada ($328.7 billion. Plus US consumers pay the additional tax on PRC imports to the USA - tariffs. as well as subsidies to US farmers due to PRC tariffs on US agricultural products e.g. soya.  trump's tariffs on PRC have failed in their purpose to reduce PRC imports. Biden keeps them in place:

 

https://edition.cnn.com/2022/01/26/politics/china-tariffs-biden-policy/index.html to defend 

The yuan is not pegged to USD, it managed to a basket of currencies