Who Holds Our Debt?

CNS News is reporting today:

Chinese holdings of U.S. Treasury securities are 11.5 percent below their peak level which was attained in November 2013, according to data published by the U.S. Treasury.

U.S. government debt held by entities in the People’s Republic of China peaked at $1,316,700,000,000 in November 2013, according to the Treasury. As of August 2018, according to the latest date released by the Treasury this month, China held $1,165,100,000,000 in U.S. Treasury.

That is a drop of $151,600,000,000 from the November 2013 peak.

We are still carrying way too much national debt, and that will be a more serious problem as the federal reserve raises interest rates. However, although China is holding less of our debt, it is still the the top foreign holder of U.S. Treasury securities.

The article concludes:

While China remains the top foreign owner of U.S. government debt—despite its declining holdings—the Federal Reserve still owns far more. As of the end of November, according to the Federal Reserve, it owned $2,324,589,000,000 in U.S. Treasury securities.

China’s $1,165,100,000,000 in U.S. Treasury securities was only 50.1 percent of the Fed’s holdings.

It’s time to cut government spending and get out of debt!

 

 

Why We Need To Stop Runaway Spending

USA Today posted a story today that the U. S. National Debt is now equal to all goods and services produced by the entire U. S. economy in one year.

The article reports:

The amount of money the federal government owes to its creditors, combined with IOUs to government retirement and other programs, now tops $15.23 trillion.

The article includes a graph:

The graph shows how rapidly the national debt has risen in recent years.

The article concludes:

The White House and Congress agreed in August to cut about $1 trillion from federal agencies over 10 years. An additional $1.2 trillion in automatic spending cuts looms beginning next year if lawmakers can’t agree on a better way to do it.

Economist Mark Zandi of Moody’s Analytics says reaching the 100% mark shows “the grave need to address our long-term fiscal problems.”

We need to elect people in November who will stop the runaway spending.

  

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What Happens When Americans Are Not Paying Attention

This is a graph of U.S. gross federal governme...

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The Wall Street Journal reported on Thursday:

The U.S. Senate, in an unusual procedure, cleared the way Thursday for the U.S. to lift its borrowing authority by $500 billion to $15.19 trillion, enough to keep the support federal government borrowing through late January or early February.

The action came under an unusual legislative procedure spelled out under the August agreement to raise the U.S. debt ceiling and avoid a U.S. credit default. In a 52-45 vote, the Senate blocked an attempt by Republicans to slow down the process that will result in the $500 billion debt-ceiling increase.

Only one Democrat broke party ranks to vote with the Republicans in trying to slow down the measure–Senator Ben Nelson, a Nebraska Democrat. The article reminds us:

The next increase in the borrowing limit, likely in the first quarter of next year, will be dependent on the ability of a panel of 12 lawmakers to reach a deal that cuts at least $1.2 trillion from federal budget deficits over the next decade.

The procedure used to vote on the increase was part of the debt ceiling worked out with President Obama in August. The bottom line here is that the spending continues unchecked as Congress goes on its merry way. It’s time to replace those in Congress who are continuing the spending with people who understand the fact that they are spending the taxpayers’ money–not their own.

 

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