Friday, March 13, 2009

Every Silver Lining Has a Cloud

Equity futures are up this morning, pointing to continuing gains for the stock market. I would like to point out however the story regarding China's concern over their U.S. Treasury holdings. In the past, I have posted my concerns over the amount of debt that the government is issuing. Japan has voiced concern (late last year) and credit default swap markets are pricing Treasuries at historic highs.

This is not an anti-Chinese sentiment that I am expressing, it is an anti-ceding control of our economy and national security sentiment. Japan holds roughly $626 billion in Treasuries and China holds roughly $727 billion. Add it up, we get $1.35 trillion. That equates to about 12.3% of all of the federal government's debt. Simply put: if they have a problem with lending the U.S. money, we have a major issue.


MK said...

The data:

MK said...

Data as of 1/31/09:

China: $739.6 billion
Japan: $634.8 billion