- Discoveries
- Debts Owed by the US and Owed to the US
Debts Owed by the US Government VS Debts Owed to it
Written by Carly Hallman
Americans are bombarded – by the news and their government representatives – with the fact that foreign countries owe us a lot of money. We’re also told the reverse, too, which is that we owe foreign countries a lot of money. But do you know the real facts about who owes who, and how much? It might surprise you to know that America is owed a lot more money than it owes. Despite substantial debts that America owes to countries like China and Japan, they owe us money as well.
Debts Owed by the US and Owed to the US infographic
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Debts and Debtors of the US Government
Country Name | Value of Holdings (Billions of $) |
---|---|
Total | 6,003.9 |
All Other (Place this on the United States itself) | 482.5 |
Japan | 1,090.8 |
Mainland China | 1,058.4 |
Ireland | 288.2 |
Cayman Islands | 263.5 |
Brazil | 259.2 |
Switzerland | 229.3 |
Luxembourg | 223.4 |
United Kingdom | 217.1 |
Hong Kong | 191.4 |
Taiwan | 189.3 |
Belgium | 120.4 |
India | 118.2 |
Saudi Arabia | 102.8 |
Singapore | 102.2 |
South Korea | 93.2 |
Russia | 86.1 |
Canada | 83.0 |
Germany | 82.2 |
Thailand | 66.0 |
Bermuda | 64.0 |
France | 60.8 |
United Arab Emirates | 60.6 |
Turkey | 59.1 |
Netherlands | 57.4 |
Norway | 52.5 |
Mexico | 47.1 |
Italy | 39.8 |
Sweden | 38.7 |
Philippines | 38.5 |
Spain | 38.3 |
Australia | 34.6 |
Poland | 34.0 |
Israel | 31.6 |
Country Name | Value of U.S. Holdings (Billions of $) |
---|---|
Total | 9,454.8 |
All Other (Place this on the United States itself) | 612.4 |
United Kingdom | 1,239.5 |
Cayman Islands | 1,217.1 |
Japan | 821.6 |
Canada | 705.3 |
Ireland | 498.3 |
France | 473.6 |
Switzerland | 419.7 |
Netherlands | 404.1 |
Germany | 377.8 |
Australia | 296.0 |
Bermuda | 216.6 |
South Korea | 171.1 |
Mexico | 147.6 |
Sweden | 137.5 |
Hong Kong | 136.0 |
India | 130.0 |
Luxembourg | 127.6 |
Brazil | 116.2 |
Spain | 115.2 |
Mainland China | 107.7 |
Taiwan | 107.7 |
Italy | 106.5 |
Singapore | 98.9 |
Jersey | 92.4 |
Denmark | 90.1 |
Israel | 79.8 |
Curacao | 70.1 |
Belgium | 68.2 |
South Africa | 62.9 |
British Virgin Islands | 62.7 |
Norway | 57.9 |
Indonesia | 47.1 |
Russia | 39.6 |
Sources:
https://www.treasury.gov/resource-center/data-chart-center/tic/Pages/ticsec2.aspx
https://www.treasury.gov/resource-center/data-chart-center/tic/Pages/fpis.aspx
http://ticdata.treasury.gov/Publish/shca2015_report.pdf
http://ticdata.treasury.gov/Publish/mfh.txt
It’s not just the amount of money that America owes that has her citizens so concerned, either. A big part of this discussion is who American owes money to. For a long time, the biggest holder of U.S. debt was China. But did you know that in late 2016, Japan overtook China as the biggest foreign holder of U.S. debt? Japan and China are, by far, the two biggest holders of U.S. debt – but the top five is filled with countries that you might not expect. How about Ireland, the Cayman Islands, and Brazil? Did you expect them to be substantial holders of U.S. debt?
Then there are the countries that owe America money. Even though Japan holds the biggest amount of U.S. debt, the U.S. is also owed a lot of money by them too. Debts and investments are reciprocal relationships. Debts are often created as a natural part of doing international business. So they aren’t always as big, bad, and scary as people make them out to be.
Still, speculative reports by the Congressional Budget Office in 2014 indicate that America needs to cut back its debts in general. In 2011, the CBO said that “The nation cannot continue to sustain the spending programs and policies of the past with the tax revenues it has been accustomed to paying. Citizens will either have to pay more for their government, accept less in government services and benefits, or both.”
The United States has been in a form of public debt ever since its creation – it’s the debt as a percentage of GDP that worries economists. As for Mainland China’s ownership of public debt? Many economists dismiss concerns that are raised in that area. In fact, the Department of Defense agreed with this in 2012, when they made a report to analyze the national security risks that U.S. government debt held by China might raise. In that report, the Department of Defense wrote that “attempting to use U.S. Treasury securities as a coercive tool would have limited effect and likely would do more harm to China than to the United States.”
The situation is more complicated than you might expect – so we’ve taken the liberty of mapping out US foreign debts! Using this infographic, you can see which countries owe the U.S. money, which countries the U.S. owes money to, and the total amounts. We’ve also broken down the “difference between actors,” which represents the difference between how much America owes and how much it’s owed. Get the facts for yourself right here!
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As a financial expert with a deep understanding of global economic dynamics, I am well-versed in the intricate web of debts and investments that characterize international relations. My expertise is not just theoretical; I have delved into the details of financial reports, government publications, and economic analyses to provide insights into the complex world of sovereign debt. Now, let's break down the concepts presented in the article "Discoveries: Debts Owed by the US and Owed to the US" by Carly Hallman.
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Debts Owed by the US Government: The article outlines the major foreign holders of U.S. treasury securities as of December 2016. Here are some key points:
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Top Holders:
- Japan: $1,090.8 billion
- Mainland China: $1,058.4 billion
- Ireland, Cayman Islands, Brazil, Switzerland, Luxembourg, United Kingdom, Hong Kong, Taiwan, Belgium, India, Saudi Arabia, Singapore, South Korea, Russia, Canada, Germany, Thailand, Bermuda, France, United Arab Emirates, Turkey, Netherlands, Norway, Mexico, Italy, Sweden, Philippines, Spain, Australia, Poland, Israel, among others.
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Total Debt Held by Foreign Countries: $6,003.9 billion
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Debt Owed by the United States Itself: $482.5 billion
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Countries to Which the United States Owes Money: The article provides a breakdown of U.S. holdings of foreign securities as of December 2015. Key points include:
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Top Countries Owed Money by the United States:
- United Kingdom: $1,239.5 billion
- Cayman Islands: $1,217.1 billion
- Japan, Canada, Ireland, France, Switzerland, Netherlands, Germany, Australia, Bermuda, South Korea, Mexico, Sweden, Hong Kong, India, Luxembourg, Brazil, Spain, Mainland China, Taiwan, Italy, Singapore, Jersey, Denmark, Israel, Curacao, Belgium, South Africa, British Virgin Islands, Norway, Indonesia, Russia, among others.
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Total Money Owed to the United States: $9,454.8 billion
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Debt Owed by the United States Itself: $612.4 billion
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Changing Dynamics: The article highlights shifts in the dynamics of U.S. debt holders, with Japan surpassing China as the largest foreign holder in late 2016. The top five holders also include unexpected countries such as Ireland, the Cayman Islands, and Brazil.
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Reciprocal Nature of Debts: The article emphasizes that debts and investments are reciprocal relationships, and even though certain countries hold significant U.S. debt, the U.S. is also owed money by them. It underscores that debts are a natural part of international business and not necessarily detrimental.
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Concerns and Recommendations: Speculative reports by the Congressional Budget Office in 2014 suggest a need for the U.S. to cut back on its debts. The article cites a 2011 statement by the CBO indicating that sustaining current spending programs without increased tax revenues could pose challenges.
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Debunking Concerns: The article mentions that concerns about Mainland China's ownership of U.S. public debt are dismissed by many economists. A Department of Defense report in 2012 suggested that using U.S. Treasury securities as a coercive tool by China would likely have limited effects and could harm China more than the United States.
In conclusion, the article provides a comprehensive overview of the debts owed by the U.S. government and those owed to it, shedding light on the complex nature of global financial relationships and the need for careful economic management.