Closing Thought–20Aug19

Economics

How many of you, my readers, believe that China is holding our debt?

Let me correct this erroneous thinking….

It is NOT China but Japan that owns the most Treasury notes……that craps on so many talking points.

Japan surpassed China as the largest foreign holder of U.S. Treasury securities in June.

Japan has added about $21 billion since May, making its holdings the largest since October, 2016. Japan now holds $1.12 trillion Treasurys, and China has $1.11 trillion, a $2 billion increase from the month earlier, according to U.S. Treasury department data.

China has been a less aggressive buyer of the U.S. sovereign debt, and market players have speculated that one action it could take in the trade war with the U.S. is to lighten up on its U.S. holdings. But there are no signs that is happening, according to traders.

The U.K. is the third-largest holder with $342.3 billion, up from $323.1 billion a month earlier.

(CNBC)

Be Smart!

Learn Stuff!

“Lego Ergo Scribo”

 

4 thoughts on “Closing Thought–20Aug19

  1. The UK is buying that debt to try to have some hold over the US, post-Brexit. But I doubt that will work, so it’s a huge mistake! 🙂
    Best wishes, Pete.

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