Which Foreign Country Owns The Most US Debt? It Ain’t China.

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It’s one of the countries the US and allied forces defeated in WWII. I hope they don’t hold a grudge.


Current Foreign Ownership of U.S. Debt

In January 2021, Japan owned $1.28 trillion in U.S. Treasuries, making it the largest foreign holder. The second-largest holder is China, which owns $1.10 trillion of U.S. debt. Both Japan and China want to keep the value of the dollar higher than the value of their currencies. That helps keep their exports to the United States affordable, which helps their economies grow.

Despite China’s occasional threats to sell its holdings, both countries are happy to be America’s biggest foreign bankers. China replaced the United Kingdom as the second-largest foreign holder in 2006 when it increased its holdings to $699 billion.

The United Kingdom is the third-largest holder with $439 billion. Its holdings have increased in rank as Brexit continues to weaken its economy. Ireland is next, holding $314 billion. It’s followed by Luxembourg with $281 billion and Brazil with $260 billion…

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Major Foreign Holders of U.S. Public Debt in Billions

(1) Japan – $1,276.7
(2) China – $1,095.2
(3) United Kingdom – $438.7
(4) Ireland – $313.6
(5) Luxembourg – 281.4
(6) Brazil – $260.4
(7) Switzerland – $254
(8) Other $3,199.6



As an aside, who do you suppose is masked by ‘Luxembourg’?


Luxembourg has earned a reputation for being a front for sovereign wealth funds and hedge funds whose owners don’t want to reveal their positions.



Sovereign wealth fund

A sovereign wealth fund (SWF), sovereign investment fund, or social wealth fund is a state-owned investment fund that invests in real and financial assets such as stocks, bonds, real estate, precious metals, or in alternative investments such as private equity fund or hedge funds. Sovereign wealth funds invest globally. Most SWFs are funded by revenues from commodity exports or from foreign-exchange reserves held by the central bank.

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What if Japan, and Western Europe, decided they wanted North America to be weakened and taken in a new direction (BRICS)?

Japan and Western Europe are major US debt-holders and wield tremendous influence.


Trilateral Commission

The Trilateral Commission is a non-governmental, nonpartisan discussion group founded by David Rockefeller in July 1973 to foster closer cooperation between Japan, Western Europe and North America.





h/t Dulcius Ex Asperis


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