Debt held by public : $9.6 trillion
Intragovernmental debt : $4.6 trillion
U.S. debt to GDP ratio already exceeds 85% in 2010. Higher debt increases interest payments on the debt and may cause US currency depreciate and slow economic growth.
Who owns it? China is the Largest Foreign Owner of U.S. Treasuries, holds approximately $1.2 trillion , following by Japan, holds approximately $885 billion.
China and Japan increased their holding of U.S Bonds in order to keep their currency low relatives to US dollar, to promote export prices competitive.
China and Japan lend huge money to the U.S. However, repayment ability of U.S. is not a cause of concern. The U.S.goverment can simply print the money to repay. However, printing money extensively and keeping interest low will cause currency depreciation.
When the time U.S. goverment pay back the debt using deprciated USD to China & Japan, will casue capital loss to China & Japan.
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