Daxie

I was watching CBS Nightly News and they were talking about Obama's visit to China to try and get them to bring business' here to create jobs. One of the things they were talking about is how much money China ows us.... but what confussed me was that the reporter made a comment that the US is paying China intrest. HUH? That's like saying I owe Master Card, but Master Card is paying me the intrest. I'm hoping that the reporter mis-spoke. any thoughts?

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>Hagar: "Before we go into battle today let me remind you what we're fighting for! We're fighting for justice! We're fighting for equality! What could be more important than that?"

>>Eddie: "How about a steady paycheck, health insurance and a good retirement plan?"

Closet Racist

If I recall correctly, we owe China quite a bit of $$$. Space Goat?

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Bean

Yeah I think that the US is actually in debt to China, not the other way around.

EDIT: Ok, so if I've read this chart correctly, as of August 2009, the US owed China 797.1 billion dollars in treasury bonds.

Meaning that China "bought" that much of the US debt in exchange for interest on the owed money. Essentially they invested in your debt. Not as sinister as it sounds though, the second country on the list is Japan at 731 billion.

It's funny, I would have thought that oil exporting nations would have ranked higher.

__________________
"I haven't faced death. I've cheated death. I've tricked my way out of death and patted myself on the back for my ingenuity. I know nothing."

--James T. Kirk

Daxie

See, that's what confussed me, the reporter said China owes the US X billion dollars, when actually it's the other way around... leave it to CBS to get the story wrong.
Basically we're only paying the intrest and not the principal. I don't know how big spending in Washington works (usually resaults in people like me getting bent over), but I do know that when it comes to any type of credit, when you pay only on the intrest and nothing on the principal, that's how you end up indebted for the rest of your life.
No surprise to me that we're in debt to China and Japan... shit those people pretty much already own this country as it is.

__________________
>Hagar: "Before we go into battle today let me remind you what we're fighting for! We're fighting for justice! We're fighting for equality! What could be more important than that?"

>>Eddie: "How about a steady paycheck, health insurance and a good retirement plan?"

Cymro

Is that in terms of foreign governments or private citizens? Because I'm surprised to see the UK owns 200billion of it.

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"Let me tell you something about humans, nephew: They're a wonderful, friendly people - as long as their bellies are full and their holosuites are working.

"But take away their creature comforts, deprive them of food, sleep, sonic showers, put their lives in jeopardy over an extended period of time and those friendly, intelligent, wonderful people...will become as nasty and as violent as the most blood-thirsty klingon."

Bean

That's in terms of foreign governments. The biggest debtor is actually the US government itself in way of social security etc..

Daxie, the way I understand it is that the US essentially sells "stock" in treasury bonds. They do up the budget, take the overspending amount and auction off the equivalent in treasury bonds. Companies, nations etc all bid on how much they're willing to take on, and bid with an interest rate they're willing to provide. Then the US goes up the list starting with the lowest interest rates and moving up the list till the money they need is covered.

Basically they're selling stock in the US economy. And China is the largest foreign shareholder. The US still "owns" the majority of the debt itself through various agencies such as social security like I mentioned above.

__________________
"I haven't faced death. I've cheated death. I've tricked my way out of death and patted myself on the back for my ingenuity. I know nothing."

--James T. Kirk

Daxie

and we're such a big "power" country... the world should tremble at our so awsome power... and yet we can't keep the coffers full. Well.... at least the bastards could buy me a drink before bending me over.... and lube would be nice too!

__________________
>Hagar: "Before we go into battle today let me remind you what we're fighting for! We're fighting for justice! We're fighting for equality! What could be more important than that?"

>>Eddie: "How about a steady paycheck, health insurance and a good retirement plan?"