Who Owns the U.S.?

Mar 042011
 

by Greg Bocquet Monday, February 28, 2011

Regardless of how much closer Obama’s budget brings our economy into a balance of payments not seen since 2001, we will continue to run deficits for the next decade, and the national debt will keep growing every year that happens.

While most of the country’s $14 trillion debt is held by private banks in the U.S., the Treasury Department and the Federal Reserve Board estimate that, as of December, about $4.4 trillion of it was held by foreign governments that purchase our treasury securities much as an investor buys shares in a company and comes to own his or her little chunk of the organization.

Looking at the list of our top international creditors, a few overall characteristics show some interesting trends: Three of the top 10 spots are held by China and its constituent parts, and while two of our biggest creditors are fellow English-speaking democracies, a considerable share of our debt is held by oil exporters that tend to be decidedly less friendly in other areas of international relations.

Here we break down the top 10 foreign holders of U.S. debt, comparing each creditor’s holdings with the equivalent chunk of the United States they “own,” represented by the latest (2009) state gross domestic product data released by the U.S. Bureau of Economic Analysis. Obviously, these creditors won’t actually take states from us as payment on our debts, but it’s fun to imagine what states and national monuments they could assert a claim to.


1. Mainland China

Amount of U.S. debt: $891.6 billion

Share of total foreign debt: 20.4%

Building on the holdings of its associated territories, China is the undisputed largest holder of U.S. foreign debt in the world. Accounting for 20.4% of the total, mainland China’s $891.6 billion in U.S. treasury securities is almost equal to the combined 2009 GDP of Illinois ($630.4 billion) and Indiana ($262.6 billion) in 2009, a shade higher at a combined $893 billion. As President Obama — who is from Chicago — wrangles over his proposed budget with Congress he may be wise to remember that his home city may be at stake in the deal.

 

2. Japan

Amount of U.S. debt: $883.6 billion

Share of total foreign debt: 20.2%

The runner-up on the list of our most significant international creditors goes to Japan, which accounts for over a fifth of our foreign debt holdings with $883.6 billion in U.S. treasury securities. That astronomical number is just shy of the combined GDP of a significant chunk of the lower 48: Minnesota ($260.7 billion), Wisconsin ($244.4 billion), Iowa ($142.3 billion) and Missouri ($239.8 billion) produced a combined output of $887.2 billion in 2009.

 

3. United Kingdom

Amount of U.S. debt: $541.3 billion

Share of total foreign debt: 12.4%

At number three on the list is perhaps our closest ally on the world stage, the United Kingdom (which includes the British provinces of England, Scotland, Wales and Northern Ireland, as well as the Channel Islands and the Isle of Man). The U.K. holds $541.3 billion in U.S. foreign debt, which is 12.4% of our total external debt. That amount is equivalent to the combined GDP of two East Coast manufacturing hubs, Delaware ($60.6 billion) and New Jersey ($483 billion) — which was named, yes, after the island of Jersey in the English Channel. The two states’ combined output in 2009 came to $543.6 billion.

 

4. Oil Exporters

Amount of U.S. debt: $218 billion

Share of total foreign debt: 5%

Another grouped entry, the oil exporters form another international bloc with money to burn. The group includes 15 countries as diverse as the regions they represent: Ecuador, Venezuela, Indonesia, Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, the United Arab Emirates, Algeria, Gabon, Libya, and Nigeria. As a group they hold 5% of all American foreign debt, with a combined $218 billion of U.S. treasury securities in their own treasuries. That’s roughly equivalent to the combined 2009 GDP of Nebraska ($86.4 billion) and Kansas ($124.9 billion), which seems to be an equal trade: The two states produce a bunch of grain for export, which many of the arid oil producers tend to trade for oil.

 

5. Brazil

Amount of U.S. debt: $180.8 billion

Share of total foreign debt: 4.1%

Rounding out the top five is the largest economy in South America, Brazil. The country known for its beaches, Carnaval and the unbridled hedonism that goes along with both has made a big investment in the U.S., buying up $180.8 billion in American debt up to December. That’s almost equal to the $180.5 billion combined GDP of Idaho ($54 billion) and Nevada ($126.5 billion), a state that is no stranger to hedonism itself.

 

6. Caribbean Banking Centers

Amount of U.S. debt: $155.6 billion

Share of total foreign debt: 3.6%

You have to have cash on hand to buy up U.S. government debt, and offshore banking has given six countries the combined capital needed to make the Caribbean Banking Centers our sixth-largest foreign creditor. The Treasury Department counts the Bahamas, Bermuda, the Cayman Islands, the Netherlands Antilles, Panama and the British Virgin Islands in this designation, which as a group holds $155.6 billion in U.S. treasury securities. That’s equivalent to the GDP of landlocked Kentucky ($156.6 billion), whose residents may not actually mind if they were ever to become an extension of some Caribbean island paradise.


7. Hong Kong

Amount of U.S. debt: $138.2 billion

Share of total foreign debt: 3.2%

At No. 7 on the list of our foreign creditors is Hong Kong, a formerly British part of China that maintains a separate government and economic ties than the communist mainland. With $138.2 billion in U.S. treasury securities, the capitalist enclave could lay claim to Yellowstone Park and our nation’s capital: The combined GDP of Wyoming ($37.5 billion) and Washington D.C. ($99.1 billion) totaled $136.6 billion in 2009.

 

8. Canada

Amount of U.S. debt: $134.6 billion

Share of total foreign debt: 3.1%

They say that a friend in need is a friend indeed, and our neighbor to the north has proven to be a kind and generous creditor in our time of financial need. Canada holds about 3.1% of our foreign debt, or $134.6 billion. If friend were to become enemy and Canada were looking to annex some U.S. land to cover the debt though, the country would have an easy time of it. The combined GDP of Maine ($51.3 billion), New Hampshire ($59.4 billion) and Vermont ($25.4 billion) comes close to Canada’s debt holdings at $136.1 billion.

Residents of the three states in our extreme northeast corner should start practicing their French: They might become Québécois one of these days.

 

9. Taiwan

Amount of U.S. debt: $131.9 billion

Share of total foreign debt: 3.0%

Taiwan, an island barely 100 miles off the coast of China, is claimed by the People’s Republic of China, despite having its own government and economic relations with the outside world. Part of those economic relations includes the island’s holding of $131.9 billion of U.S. debt, roughly equivalent to the combined GDP of West Virginia ($63.3 billion) and Hawaii ($66.4 billion), which totals $129.7 billion.

Unless we get our spending in check, we risk losing some of our most visually stunning territory (West Virginia, obviously) to our friendly neighbors on the other side of the Pacific Ocean.

 

10. Russia

Amount of U.S. debt: $106.2 billion

Share of total foreign debt: 2.4%

Starting off the list of our major foreign creditors is Russia, which holds about 2.4% of the U.S. debt pie that sits on the international dinner table. Its $106.2 billion in treasury securities is equivalent to the 2009 GDP of our sparsely populated North: The combined output of North Dakota ($31.9 billion), South Dakota ($38.3 billion) and Montana ($36 billion) matches up nicely with the Russian holdings, at $106.2 billion…….story

 

Economic Collapse – Is there a magic bullet?

Feb 032011
 

It’s not INCOME tax we need to look at raising so much, as the top 5% only EARN 19% as income.  We need to raise the Capital Gains tax rate!  By means of “trickle down” economics this rate went from 70% to only 15% almost overnight!  I believe that the ultimate system of Government would have NO taxation, but since we’re stuck with one that does for now…  WHY IN THE WORLD DID THE GOVERNMENT SHOOT ITS OWN FOOT BY GIVING AWAY ITS PRIMARY SOURCE OF REVENUE TO PAY ITS OBLIGATIONS? Duh, the laws were purcha$ed!  Consider this analogy:

 

Let’s say I have some property that has oil, and the revenue from that oil is exactly enough to pay all my bills and has done so for many years.  Now the oil is distributed unequally on the property and 95% of the land requires a lot of work to extract it.  The other 5% of the land just bursts with oil that is easy to extract and it produces as much oil as the 95%.  One day the president of Big Oil Company drops by and asks me to sign over the rights (in written contract) to 60% of the oil I’m extracting from the most productive land.  In exchange, Big Oil Company promised (with no written contract) to increase the productivity of the 95% to make up the difference.  Guess what…  we took that deal!  Of course Big Oil Company had not only broken their promise to increase the productivity of the 95% but they actually reduced it by re-investing their newly found profits into extracting more oil, but in other countries where it was much cheaper.  Our debts were piling up because we never changed our budget to accommodate the loss in revenue, so we decided to get a Big Oil Company Credit card to pay the bills.  We’ve been using that credit card for 30 years now.  Essentially the Republicans are to blame for giving away the revenue and the Democrats are to blame for using the credit card.  Neither is necessarily worse, but both are extremely flawed.

 

Here’s a few disturbing facts:

 

In 1980 5% of the population owned 8 trillion dollars

Today that same group owns 40 trillion dollars

That’s more wealth than the entire human race had created prior to 1980

 

The top 1/2 of 1% own more wealth than the bottom 50% combined

 

The interest alone on the national debt was $110.50 per month for every person in your house

 

 

At this point there is NOTHING we can do to avoid the explosion of the dollar except take back the “oil from Big Oil Company” (IE remove the Trickle Down tax breaks).  When the debt is paid and the slate is clean we can look at things like getting rid of the Fed or the IRS, but until then we’ll continue to dig this bottomless pit, better known as our own grave.

 

=Dave

 

- If you want change vote for anyone you want to, just not a Democrat or a Republican

Can collection company remain on my bureau if OC took debt back?

Jan 032011
 

I have a Nationwide Acceptance Corp collection on my bureau even though the OC took the debt back. I dischaerged my ch7 10/12/10 and the OC had the debt back before I filed. I included both OC and collection company in my BK. I disputed with the credit bureaus for the collection and of course it came back verified. I then wrote the collection company and the president wrote me stating the OC took back the debt and they are not responsible for any reporting errors. Can they remain on my bureau or do they have to remove? If they have to remove what law can I site in my next letter to the president himself?  Thanks

Wells Fargo GW Letter

Nov 112010
 

So, I sent a gw letter via snail maile to wells fargo for the 3 – 30 day late that I wanted to get removed…and today I received a phone call from the president and ceo of wells fargo and she said they can’t remove it! she said everything is accurate and we can’t remove anything that is accurate. :smileysad:  I was hoping that phone call was a positive one but it wasn’t.

GW Success on many — have to laugh at the response from Sears though…

Oct 142010
 

I had success with GW letters and emails for multiple companies including Chase and Bank of America in the last 30 days.  In both cases I was able to get 30 day lates from July 09 removed with a short explanation and a lot of persistence.  The people that returned calls were extremely friendly and helpful.  I got a call from Sears 10 minutes ago.  The woman calling was from the President’s office.  She explained to me that she could not do a “courtesy adjustment for a 30 day late payment of $40 because of the new Obama Act” and because “the Federal government’s Office of the Controller carefully watches for this kind of illegal act from company like Sear’s.”  I screwed up my chances for good because I had to ask her (politely mind you) if she was actually serious.  She said she was and that “the government has taken this out of her hands.”

 

Anyone have any GW good luck with Sears recently that can share a contact name or information?

Success with Sallie Mae!

Sep 292010
 

I have a boatload of student loans that went into default a few years back.  Part of my credit rebuilding process has been to rehabilitate the student loans and get all of those negatives removed. Unfortunately, although I completed the process for my 12 Sallie Mae loans in November 2009, 9 of my loans through them have continued to show tons of 120 day lates,”Charged off” and “Loan being paid thorugh insurance” rather than a zero balance and “paid as agreed.” This was for each of  9 loans, so you can imagine how this is killing my score.

 

I asked the guarantor (Pioneer Credit, who I rehabilitated the loans with) in February or March of this year when the loan records would be cleared and was told to contact Sallie Mae directly as Pioneer Credit no longer had the loan (it was purchased by Direct Loans after the rehabilitation process — still in good standing, btw).  I don’t know if anyone has tried calling Sallie Mae these days but all the 800 numbers go to India now.  I met a brick wall there and was basically told that, regardless of what Pioneer Credit promised me, Sallie Mae could not remove the negatives and they would come off in 7 years.

 

I then decided to dispute it with the CRAs and after a month or so my Sallie Mae listings changed — for the worse. Some of the loans that had been listed as “pays as agreed” now showed the 120 day lates and charge offs. My scores dropped 20 or 30 points across the board.  I tried calling again back in July or August and again got India. I was told “we can’t change it and the negatives will come off in 7 years” again. I asked to speak with someone in the US. I finally got someone at Sallie Mae who said they would investigate and there were some recent updates to my Sallie Mae listings but just things like “date of last activity” changes. Nothing that pulled them out of negative status.

 

After reading this board, I decided to try a different approach and a couple of weeks ago I emailed the President of Pioneer Credit at Sallie Mae. I told her my story and told her I had been assured the negatives would be purged after I completed the rehabilitation process. I explained how much these negatives were hurting my credit and that I had tried working through channels for nearly a year to no avail.

 

Two days after I sent my email I received a response from someone at Sallie Mae letting me know that the President had forwarded my note and assuring me that they were investigating the issue. Today I received a call from someone on her team letting me know that all of my accounts are being marked “Zero balance” and “pays as agreed” and should be updated on the CRAs by the end of the week.

 

My first success in the rebuilding process!! I just had to share! :)

Departure of President’s Financial Advisors

Sep 222010
 

The departure of the third of the President’s financial advisors is merely the overeducated impossibly liberal financial rats deserting a sinking ship.  Now that they have ruined American economy, burdened several future generations with enormous debt and sent the American dollar on a suicide plunge, they want to hide back in academia.   Of course it will be John Q. Public’s fault that he lost his job, his home, his hope of steady income and will be paying outrageous prices for a loaf of bread.  It could never be that Harvard has idiot Ph.D.’s, could it?

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