A U.S. bailout means loans from China, Japan, UK, Caribbean and oil exporters

Thursday, November 20, 2008

China now owns more U.S. public debt than any other nation — about one out of every 10 debt dollars — a reflection of its growing global economic influence. Blame wars, bailouts and stimulus plans — all big-ticket and unbudgeted expenses. With China buying our debt, it is, in effect, boosting the U.S. dollar relative to the yuan, making imports cheaper (and more attractive). The United States has imported five times as much as it has exported to China this year.

Top owners of U.S. public debt (as of Sept. 2008):
China $585 billion
Japan $573 billion
United Kingdom $338.4 billion
Caribbean Banking Centers* $185.3 billion
Oil-Exporting Nations** $182.2 billion
Brazil $141.9 billion

* Includes Bahamas, Bermuda, Cayman Islands, Netherlands Antilles, Panama, British Virgin Islands
** Includes Ecuador, Venezuela, Indonesia, Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, the United Arab Emirates, Algeria, Gabon, Libya, Nigeria

Guests:

Kevin Phillips

Contributors:

Sitara Nieves

Comments [3]

Todd

Frans
We don't need any more Keynsian economic antics. This is the reason we are in the bugger we are in now. Keynes had no issue with printing money out of thin air or adding to the public debt in order to simulate economic prosperity. It's time we stopped listening to these so called experts who are too intelligent by half, and have just about bankrupted us.
The sound policies at Mises are much more realistic and are the only ones that call for fiscal responsibility.

Dec. 09 2009 09:02 AM
Vlad

The debt portion with Kevin Phillips was FANTASTIC. Apocalyptic and funny at once. It may have changed how I will (not) spend the rest of my day. You should have him on the show often and should reward the people who produced this prime radio piece. You make me late to work, Takeaway.

Nov. 20 2008 11:10 AM
Frans Verhagen, PhD

One of the main reasons for these enormous surpluses and debts among nations is the lack of a proper monetary system that would balance trade relations between nations. Nations have to adopt the Keynesian proposal of the "bancor" that was torpedoed by the US in the 1940s. For more information see Monbiot's article in the Guardian of November 18 and www.fcvnyc.blogspot.com

Nov. 20 2008 07:34 AM

Leave a Comment

Register for your own account so you can vote on comments, save your favorites, and more. Learn more.
Please stay on topic, be civil, and be brief.
Email addresses are never displayed, but they are required to confirm your comments. Names are displayed with all comments. We reserve the right to edit any comments posted on this site. Please read the Comment Guidelines before posting. By leaving a comment, you agree to New York Public Radio's Privacy Policy and Terms Of Use.