Major Foreign Holders of Treasury Securities

Posted: July 3rd, 2009 by: h2

Check this list of current foreign holders of US government debt. I found that while reading Economic Fragility Underestimated – Collapse May Be Imminent on Seeking Alpha.

The 4 Key Reasons an Economic Collapse is Likely Imminent

1. The U.S. has unprecedented, massive amounts of current and coming debt.
2. Foreign countries have experienced their own crises, and they cannot offer added levels of debt funding for the U.S. Even if they could, they are unlikely to do so.
3. Productivity is declining, and everything the government is doing is further hurting productivity.
4. The U.S. is printing unprecedented, massive amounts of money and no longer has an ability to control inflation and deflation.

The US treasury department list of Treasury Security holders is updated I assume every month, last stats from April. Note that almost every major holder has less US government debt in April than in May, despite the US government selling record amounts of debt to fund it’s bailouts of the cancerous financial leeches which abuse the term ‘industry’ beyond belief (‘industries’ produce things, and debt is not a thing).

So who is buying the rest? I assume we, the US tax payers are. And please don’t spout any of that Fox news generated nonsense about ‘tax and spend liberals’, this is about gross economic collapse fueled by 20 years of removing financial regulations, coupled with humanity reaching a peak in per capita natural resource consumption, then a physical peak in gross natural resource production, especially in oil, which is the primary resource that drives our modern non-sustainable ‘economy’.

Watch that chart to see what happens. Since the US needs to sell some 1.5 trillion more debt this year if I get the numbers right to keep afloat, and since increasing amounts of the debt held now by China and other major debt holders is short term, the real stat to track is who is buying the long term debt.

I suspect that the Chinese and others are now in the process of moving their longer term debt, as it comes due, to shorter term positions, which avoids creating the appearance of dropping long term investments in US bonds while actually creating the situation where they can exit slowly by translating dollar holdings into real things, like oil companies, natural resource contracts, and so on.

This is a big game, and the USA is losing.

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