Comments on: Ask the taxgirl: Who Owns the US Federal Debt? http://www.taxgirl.com/ask-the-taxgirl-who-owns-the-us-federal-debt/ tax news, tax info and tax policy Wed, 07 Jan 2009 04:54:49 +0000 http://wordpress.org/?v=2.7 hourly 1 By: Truth v. The Machine » Archives » A Trillion Here, A Trillion There… http://www.taxgirl.com/ask-the-taxgirl-who-owns-the-us-federal-debt/comment-page-1/#comment-7592 Truth v. The Machine » Archives » A Trillion Here, A Trillion There… Tue, 25 Nov 2008 20:19:40 +0000 http://www.taxgirl.com/ask-the-taxgirl-who-owns-the-us-federal-debt/#comment-7592 [...] we currently produce but likely will further put other countries in control of American debts.  27% of US debts are in the hands of foreign governments, owned largely by the Chinese, Japanese and British who continue to play the role of dealer to the [...] [...] we currently produce but likely will further put other countries in control of American debts.  27% of US debts are in the hands of foreign governments, owned largely by the Chinese, Japanese and British who continue to play the role of dealer to the [...]

]]> By: Update on the Federal Deficit http://www.taxgirl.com/ask-the-taxgirl-who-owns-the-us-federal-debt/comment-page-1/#comment-5846 Update on the Federal Deficit Mon, 04 Aug 2008 10:20:49 +0000 http://www.taxgirl.com/ask-the-taxgirl-who-owns-the-us-federal-debt/#comment-5846 [...] Last week, the White House estimated that the deficit will hit a record $482 billion deficit for the 2009 fiscal year. The crazy part is that does not include an additional $80 billion in costs related to the war in Iraq. That brings the country’s total debt to $9.5 trillion. (For more on the difference between debt and deficit, see my prior post) [...] [...] Last week, the White House estimated that the deficit will hit a record $482 billion deficit for the 2009 fiscal year. The crazy part is that does not include an additional $80 billion in costs related to the war in Iraq. That brings the country’s total debt to $9.5 trillion. (For more on the difference between debt and deficit, see my prior post) [...]

]]> By: Luca http://www.taxgirl.com/ask-the-taxgirl-who-owns-the-us-federal-debt/comment-page-1/#comment-5847 Luca Sun, 29 Jun 2008 22:48:58 +0000 http://www.taxgirl.com/ask-the-taxgirl-who-owns-the-us-federal-debt/#comment-5847 China is not in the business of lending money to other countries -- especially at rock-bottom interest rates in a depreciating currency. They are in the business of driving the economic development of a nation of 1.3 billion people. A rip-roarin' US economy is what benefits them best. It's like car companies doing 0% financings. They lose money on the financing side, but they badly need to keep inventory moving so it's ok. National debt is also very different from bank debt because it comes with no leverage. They can't dump the t-bills they own because there are no big enough buyers to make a difference. And the ensuing further drop in the dollar would devastate their economy. Remember the saying: if you have a little debt the bank owns you, but if you have a lot of debt you own the bank. Don't misunderstand me - I'd much rather see the US as a net creditor rather than a net debtor. However I'd rather see China criticized for their human rights track record rather than for their willingness to finance our living above our means. China is not in the business of lending money to other countries — especially at rock-bottom interest rates in a depreciating currency. They are in the business of driving the economic development of a nation of 1.3 billion people. A rip-roarin’ US economy is what benefits them best. It’s like car companies doing 0% financings. They lose money on the financing side, but they badly need to keep inventory moving so it’s ok.

National debt is also very different from bank debt because it comes with no leverage. They can’t dump the t-bills they own because there are no big enough buyers to make a difference. And the ensuing further drop in the dollar would devastate their economy. Remember the saying: if you have a little debt the bank owns you, but if you have a lot of debt you own the bank.

Don’t misunderstand me - I’d much rather see the US as a net creditor rather than a net debtor. However I’d rather see China criticized for their human rights track record rather than for their willingness to finance our living above our means.

]]> By: Kelly http://www.taxgirl.com/ask-the-taxgirl-who-owns-the-us-federal-debt/comment-page-1/#comment-5845 Kelly Sun, 29 Jun 2008 15:45:02 +0000 http://www.taxgirl.com/ask-the-taxgirl-who-owns-the-us-federal-debt/#comment-5845 I disagree. There is always an incentive for a lender to keep a debtor in debt. I would agree that China wouldn't benefit if our economy were to tank - but they also don't benefit if we suddenly control our own debt. It's like a credit card company. A credit card company doesn't ever really want you to stop borrowing - they just want to make sure they get paid along the way. Those companies don't benefit when consumers don't borrow. China isn't lending to us for fun or altruism. It's an investment - one that counts on the fact that we will continue to be in debt. I disagree. There is always an incentive for a lender to keep a debtor in debt.

I would agree that China wouldn’t benefit if our economy were to tank - but they also don’t benefit if we suddenly control our own debt.

It’s like a credit card company. A credit card company doesn’t ever really want you to stop borrowing - they just want to make sure they get paid along the way. Those companies don’t benefit when consumers don’t borrow.

China isn’t lending to us for fun or altruism. It’s an investment - one that counts on the fact that we will continue to be in debt.

]]> By: Luca http://www.taxgirl.com/ask-the-taxgirl-who-owns-the-us-federal-debt/comment-page-1/#comment-5844 Luca Sun, 29 Jun 2008 02:41:13 +0000 http://www.taxgirl.com/ask-the-taxgirl-who-owns-the-us-federal-debt/#comment-5844 "...China owns a lot of our debt (not a good thing)..." Why not a good thing? That gives China another reason (besides our being their primary export market) to keep the US economy strong and healthy. “…China owns a lot of our debt (not a good thing)…”

Why not a good thing? That gives China another reason (besides our being their primary export market) to keep the US economy strong and healthy.

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