Why China?

China is the largest foreign holder of America’s national debt, 21.2 percent, or $1.2 trillion of the $5.4 trillion in U.S. public debt held by other coutnries]. The next largest foreign holders of U.S. Treasury securities are Japan [20.6 percent], the OPEC nations (4.8 percent), Caribbean Banking Nations (4.7 PERCENT), and Brazil (4.7 percent). The Federal Reserve holds the single largest percentage of U.S. debt.

CAGW’s ad in no way means to imply that the Chinese are responsible for America’s financial problems.  The blame rests squarely on the shoulders of America’s elected officials from both political parties who have refused to pursue responsible fiscal policies.

Under President George W. Bush, the national debt went from $5.67 trillion to $10.02 trillion in eight years, an increase of 76.7 percent. Under President Barack Obama, the debt had reached $14.76 trillion at the end of fiscal year 2011. The debt eclipsed $16.06 trillion at the end of fiscal year 2012, or a 60.3 percent increase over four years. By the end of fiscal year 2013, the national debt is estimated to hit $16.81 trillion, which will mark a 196.5 percent increase over the last two administrations.

Foreign Holders of America’s National Debt

source: Department of the Treasury/Federal Reserve Board