Meta-Blog

SEARCH QandO

Email:
Jon Henke
Bruce "McQ" McQuain
Dale Franks
Bryan Pick
Billy Hollis
Lance Paddock
MichaelW

BLOGROLL QandO

 
 
Recent Posts
The Ayers Resurrection Tour
Special Friends Get Special Breaks
One Hour
The Hope and Change Express - stalled in the slow lane
Michael Steele New RNC Chairman
Things that make you go "hmmmm"...
Oh yeah, that "rule of law" thing ...
Putting Dollar Signs in Front Of The AGW Hoax
Moving toward a 60 vote majority?
Do As I Say ....
 
 
QandO Newsroom

Newsroom Home Page

US News

US National News
Politics
Business
Science
Technology
Health
Entertainment
Sports
Opinion/Editorial

International News

Top World New
Iraq News
Mideast Conflict

Blogging

Blogpulse Daily Highlights
Daypop Top 40 Links

Regional

Regional News

Publications

News Publications

 
National Debt: Myth and Reality
Posted by: McQ on Monday, October 02, 2006

The Skeptical Optimist puts lie to a fairly presistant myth.

Now my point here is not to endorse debt. It is simply to make known the facts when someone, anyone, begins attempting the argument that our security is threatened by certain countries who control so much of our debt. The typical argument:

Rep. Steny Hoyer (D-MD)
This administration, in 5 years, now in their sixth, has borrowed from foreign entities, China, Saudi Arabia and others, $1.055 trillion. In other words, this President, in 5 years, has borrowed more money from foreign governments, foreign banks, foreign financial centers than all of the other Presidents America has had, combined.

Mr. Speaker, you don't need a doctorate in economics to appreciate that our Nation's economy and its security is more vulnerable when we are deeply indebted to foreign creditors.
Note that Hoyer alludes to our problem being primarily that of us owing "China, Saudi Arabia and others" over 1 trillion in debt.

Well, as Skepitcal Optimist shows us, while they do indeed own a piece of the pie, it's not at all as big as some would like us to believe.


So foreign debt consists of less than 1/3 of all debt. And the Japanese who own the biggest chunk and who we were previously told would "own America" by buying up debt?

Well, they're selling:


So while it is true that there is a part of the debt controlled by foreign interests, it's not even close to what Hoyer contends. Not only that it is those bastions of anti-Americanism who would love to wreck our economy, the UK and those damn Canadians for whom we should be watching out.
 
TrackBacks
Return to Main Blog Page
 
 

Previous Comments to this Post 

Comments
Forgive my ignorance on this... but...
How does the US Government "own" ~3.5 trillion dollars of it’s own debt?
 
Written By: Tito
URL: http://
How does the US Government "own" ~3.5 trillion dollars of it’s own debt?
It’s what we have to cough up in additional taxes to pay back the Socialist Insecurity fund money we’ve spent.

Yours, TDP, ml, msl, & pfpp
 
Written By: Tom Perkins
URL: http://
In other words, this President, in 5 years, has borrowed more money from foreign governments, foreign banks, foreign financial centers than all of the other Presidents America has had, combined.
So has anyone ever ran the numbers (adjusted for inflation natch) to check this? Not that I doubt it much, but I wouldn’t mind seeing the numbers.
 
Written By: err
URL: http://
So with the cost of the Iraq War less than half of the trillion dollars, just how can any politician say, with a straight face, that Bush has really cut anything ? Rearranged it a bit, yes, but cut, for crying out loud, no.

As for the government owning $3499 billion of the national debt, there are also more than $3499 billion in liabilities to more than match.
 
Written By: Neo
URL: http://
How does the US Government "own" ~3.5 trillion dollars of it’s own debt?
What? You don’t recognize your Social Security "lockbox"?
 
Written By: McQ
URL: http://www.qando.net/blog
It’s what we have to cough up in additional taxes to pay back the Socialist Insecurity fund money we’ve spent.
I’m sure glad it’s all nice and safe, just waiting to be there for me when I need it.
 
Written By: Pablo
URL: http://
68% of the debt to British sorts!

Soon we’ll be forced to refer to our Chips Ahoy cookies as ’biscuits’.
Then they’ll make us add an additional ’i’ to the word aluminum, our gasoline
will become petrol, and we’ll be forced to observe the ’robots’ at major intersections turning from red to green before we can proceed.
They may even replace the intersections with roundabouts!

Why isn’t Congress protecting us?
Why are they misleading us by not highlighting the dangers of CanadoBritish imperialism?
What do Nancy & Hillary propose to do about all this!?!
 
Written By: looker
URL: http://
What do Nancy & Hillary propose to do about all this!?!
Why you silly person looker, it’s quite obvious they will want to have a cup of afternoon tea.
 
Written By: meagain
URL: http://
I never believed that our security was threatened by who held our debt.

I do believe that our economic prosperity is threatened by too much debt.

As interest rates rise and the debt begins to take a larger share of the budget to service, it can put pressure upon the politicians to inflate the economy.

We are not in a danger zone yet, but the unfunded liabilities of Medicare and SSN will be a big pill to swallow.
 
Written By: kyle N
URL: http://impudent.blognation.us/blog
Why you silly person looker, it’s quite obvious they will want to have a cup of afternoon tea.
with scones, and those raisin thingies.
 
Written By: kyle N
URL: http://impudent.blognation.us/blog
BTW! What happened to Red State? Did it get nuked by the Libs?
 
Written By: kyle N
URL: http://impudent.blognation.us/blog
As interest rates rise and the debt begins to take a larger share of the budget to service, it can put pressure upon the politicians to inflate the economy.
Your economy is inflating faster than your debt, see Skeptical Optimists "best debt clock".
 
Written By: unaha-closp
URL: http://warisforwinning.blogspot.com/
Hmmmm. Interesting. Not sure about this one. Not going to bother researching the antipodal graphs saying the opposite. Worth a further look though if I had the time.
 
Written By: glasnost
URL: http://
I’ve seen discussions about what could happen if during a major incident with China, it decided, against it’s own economic interests, to sell off large quantities of US government securities that it would flood the bond market making it impossible for the federal government to sell new bonds to secure enough cash to pay anybody.

So far, the downside has looked too costly, but given the right set of factors, any of those major debt holders could cause a hold lot of trouble.

Frankly, this is the same problem with the Social Security "LockBox" bonds, stored safely in West Virginia. The SSA could be as dangerous as any foreign debtor.
 
Written By: Neo
URL: http://
The Skeptical Optomist is a great website. For the left-leaning commenters who might be skeptical, his main thesis is that government shouldn’t worry so much about spending or taxing, but instead focus on policies that keep the growth rate high, so the debt naturally comes down.

I’d peg him as a fiscal moderate if there ever was one.
 
Written By: Harun
URL: http://
Of course the debt can’t come down if spending is always greater than the taxing.
 
Written By: Unknown
URL: http://
Of course the debt can’t come down if spending is always greater than the taxing.
Sorry, I meant debt as percentage of GDP.

Also, it seems like governments mainly go into surplus from good economic times rather than cost cutting or increased taxation...but that’s just my observation.
 
Written By: Harun
URL: http://
Bwahahaha Our plot has been discovered!!

Seriously now though, The US government couldn’t, for National Security Resons, manage to find $321 Billion to buy off the Chinese debt? It’s a sizable chunk of change for sure, but not impossible.
 
Written By: Joe_canadian
URL: http://
"Seriously now though, The US government couldn’t, for National Security Resons, manage to find $321 Billion to buy off the Chinese debt"

Sure, we borrow it from the Brits.
 
Written By: timactual
URL: http://

 
Add Your Comment
  NOTICE: While we don't wish to censor your thoughts, we do blacklist certain terms of profanity or obscenity. This is not to muzzle you, but to ensure that the blog remains work-safe for our readers. If you wish to use profanity, simply insert asterisks (*) where the vowels usually go. Your meaning will still be clear, but our readers will be able to view the blog without worrying that content monitoring will get them in trouble when reading it.
Comments for this entry are closed.
Name:
Email:
URL:
HTML Tools:
Bold Italic Blockquote Hyperlink
Comment:
   
 
Vicious Capitalism

Divider

Buy Dale's Book!
Slackernomics by Dale Franks

Divider

Divider