Friday, 26 June 2009
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Does China Now Own the United States?
According to a recent article in Newsweek, the United States is now currently $11 trillion in debt and $3.3 trillion of that is owned by foreign countries. 53 foreign countries now own the debt of the US and out of all of these countries, who do you think is the largest share holder? If you guessed China, then you would be correct. China comes in first on the list, owning $767.9 billion and Japan comes in second owning $686.7 billion of our national debt (Newsweek, 2009). Saudi Arabia, Iran, Iraq, Algeria and Russia now also own part of the United States, just to name a few.
Despite this, the national debt keeps on growing. Every second it increases by $1 million dollars. Since 2007 it has increased by $3.71 billion per day, but since President Obama took office only 5 months ago the national debt has grown a staggering $137.27 billion per day. The new universal healthcare system that the Obama administration wants to implement is projected to put the US $1.2 trillion more in debt over the next 10 years, but will still leave 37 million people uninsured. Many believe that this number will actually end up being closer to $5 trillion after all of the smoke has cleared. Bush started the problem and Obama has now exacerbated it beyond repair (Newsweek, 2009).
So what exactly does it mean when countries like China own our debt? Well, when you take out a car loan to buy a car, the lender that gave you the loan puts a lean on your car until you are able pay off the loan, which basically means that the lender owns part of your car until you pay them back. So essentially, these foreign nations now own part of the US. But it gets even worse. China has recently expressed uneasiness and anger to the Secretary of Treasury Timothy Geithner because they have not seen a return on their investment and are starting to believe that the US will not be able to pay them back. They do not want to loan us anymore money, and they now want us to start paying them back right away. And there are also other disastrous ramifications that will occur if the national debt continues to grow at the alarming rate that it is. Inflation will increase because the Federal Reserve is dangerously printing money to pay off the debt, thus the value of the dollar is growing smaller and smaller. It’s also possible that the US could become bankrupt at some point in time which will make the dollar bill, your property, your life savings and everything else worth absolutely nothing (The Economist, 2009). Most people are forced to live within a budget, so why shouldn't our government be forced to operate by the same principle? Clearly the spending spree in Washington needs to stop, but unfortunately the new administration shows no sign that this will actually happen anytime soon.
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Comments (60)
Obama's plan - Ruin our economy, ruin the nation. His plans have already caused almost irreparable damage, and he just keeps piling it on. I think he looks at the American citizenry as a bottomless pit of wealth to be tapped.
But they can afford 100$ steaks per person for parties and so fourth...
Maybe if they put there own spending and shopped at walmart like normal people that live within a budget... We could put that money towards the debt... and OMG!!! we might be able to lesson some of that debt..
I still Like Ron Whites version of getting out of debt...
Thanks for posting this.
I am "starting to believe that [my friend] will not be
able to pay [me] back. [I] do not want to loan [him] anymore money, and [I] now want [him] to start paying [me] back right away."
I know how China feels.
Anyway, I was thinking that I perhaps should invest in gold or convert my savings into euros or some other more promising currency. Also, if the dollar becomes worth less and less, if I switch back from euros, another currency, or gold to dollars, I'll end up with even more dollars than I started with.
If the Chinese called in all the money we owed them...we'd be screwed. Because we owe them so much, they're using this the situation (along with Russia) to try to bully us into a world currency. I'm afraid they will succeed.
To be honest, I'm thinking that Obama plans to get as much money out of this country as he can for himself and his friends before the economy collapses into complete chaos. Which would then provide an opportunity for them to set up a marxist oligarchy. However, there are still many of us who would fight such an attempt. But I do believe it may come to that. Call me a conspiracy theorist but I was called that for saying Obama was socialist during the elections and now we have the media trying to flat out defend socialism. Is it really a conspiracy theory to connect the dots on the path we're heading down? History repeats itself...
I notice your graph is only showing the "foreign" owners of debt. Do you have a graph that shows both foreign and domestic owners of the debt together?
Strangely, only the Federal government and California seem to be the two governments that run on deficit budgets where they can go into as much debt as they want. Most other states run on regular budgets, meaning they spend within their means. And one only needs to see the mess California has gotten itself into to see the path our Federal government is going to experience. We need to reform the whole system, but nobody wants to be the one to do it. And to blame Obama is not fair since Bush started this whole mess, and how do you pay off bills when you are in staggering debt? How many Republicans out there are willing to give up their Social Security checks or Medicare? If you want to cut government spending, you have to be willing to suffer the consequences, or you'll just have to pay more taxes. Can't have your cake and eat it too.
@Stoltz13 - No but I'll try to find one.
@coolmonkey - I did actaully mention in the blog that Bush started it, but Obama has made it worse, the facts don't lie. The stimulus bill accounts for a large portion of Obama's recent debt, and most of that has gone into temporary construction programs, not social programs.You want to talk about cutting social programs? How about welfare and social security that are largely contributing to our debt, and they were started by FDR who was a Democrat by the way. And what about Obama's universal health care plan that will put us $5 trillion dollars into debt but only cover 37 million people? Don't you think that should be cut. Most of these social program were actually started by Democrats. So I have every right to specifically attack Obama because he is the one who is responsible for tripling our debt, and for what? Millions of jobs are still being lost, so that so called stimulus bill was pointless.
I'd say that you should run for office but obviously you have a grasp on reality so you wouldn't fit in.
Welp, I'm not lettin' none of those ching chong wing wongs stay at my house when they invade us
I think it needs to be pointed-out that the one truly lasting value is that of land.
Real-estate is able to maintain it's inherent value and so we can expect a larger effort by government to utilize 'eminent-domain' and property forfeiture laws to steal property. There are several states experiencing this now and Pennsylvania has included people attempting to avoid the punitive 'smoker's tax' as a reason to steal property. I.E. - http://www.washingtontimes.com/news/2009/jun/19/dc-smokes-out-tax-scofflaws/
Worse still is the new "cap and trade" law that the government is forcing down our throats. I.E. - http://news.yahoo.com/s/ap/20090627/ap_on_go_co/us_climate_bill
This bill will increase the cost of EVERYTHING from groceries to gasoline to medical care.
This will become the mechanism by which America will be turned into another third-world bananna republic.
Even how you live (or maybe die) in the winter months will be determined for you.
I.E. - http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=59639
also http://www.foxnews.com/story/0,2933,509669,00.html
Watch for the emerging global economy, watch for B.R.I.C. to take center-stage.
It is coming and soon.
Good luck folks.
The thing I wonder about is just how much most "common sense" people in this land are really being heard by those in office any more. I've heard more cases the last couple of years about representative knocking their constituents for how they voted. Another thing that saddened me was the mainstream media's reaction to the tea parties that went on across the land. Howling goes on about out of control spending on one hand, and yet when someone actually tries to put a stop to it. . . you can't have it both ways. Soomer or later, basic needs are pitted against each other, and it turns into a "no-win" situation.
Duck for cover. The damn Global Warming bill passes. This is completely unbelieveable. Here comes more taxation without representation...when are we going to Atlas Shrug this shit?
Correction...it's the "Clean Air Act" bill. Unread.
Here's a really good video on yt that talks about this.
http://www.youtube.com/watch?v=Qt4R6TQJjg8
@Rejected_Stone - Dude, yes, that is exactly what I was thinking.
-- Soledad
@bloodforoil - I thought the same about eminent domain and property, which is, if I ever get money, going to be what I invest in. But I'm afraid the government will fuck that up and steal it from me, because it couldn't stay out of the candy store.
-- Soledad
@Public_Enlightenment - I was listening to conservative talk radio (obviously biased source, but I'll hope the information is truth) and whoever was hosting it said that welfare programs are now 60% of our budget. In the past, it was only some 20%, with defence being the highest expenditure.
And I agree, this is all FDR's fault. People before then waited until they had the full payment for something to buy it, and they would be ashamed to accept government checks. Now, reverse, indeed that is the partial reason we're in a 'financial crisis.' People are financially irresponsible, and as is the government for devoting so much funds on a populous that isn't making any return.
-- Soledad
Oh my goodness, I had no idea that it was THIS bad. This is horrible. Way horrible. Obama (who was supposed to make everything better) sure isn't helping the situation at all.
The passing of H.R. 2454 really seems like the worst thing that could happen to all of us. The energy requirements and penalties are just ways to strangle our lives moreso than we already have been strangled.
Everyone has to be mindful of this and make sure that it doesn't pass the Senate. It is utterly ridiculous. You have to watch some videos of Rep. John Boehner (OH) in the House talk about it--it will make you fume. The bill is over 1000 pgs--300+ pages were inserted the night of the vote. So essentially, like the bailout bill--how can our Congressmen feasible vote on something they can't feasibly read comprehensively, much less comprehend all the details? Boehner is talks about the shaky details and how much it will cost us.
Henry Waxman authored this Bill. May he from here on out live in infamy.
It is the Bankers we must watch. They start and control all wars. We have a big one coming which can be detected by the upheaval in all central banks. Time to re-organize the entire world again. Can't you smell it?
TuT
@curtainsopen - @amygwen - I wish people would stop dwelling the past--that we can't change, and see what's immediate.
H.R. 2454
@picassosinatra - high road for you then. when it's convenient.
What I think of this news, is that, advise Mr.President, to know and study how do China have that much money, how do they do it and adapt it, apply it to his government before China could grab the " title of the strong country" that once USA tag for a long time.
Ireland owns 1.63% of that debt?
That's money never to be seen again!