(02-25-2026, 06:16 PM)Kenzo1 Wrote: There is nothing to be jealous about U.S now . Once great nation decided to flush all down to toilet ..."decided" = vote people who can do it.
Regarding U.S economy , are you realizing all the details? Other countries buy your dept so you can keep up in the spiraling dept economy. If others like the Europe would decide we dont want to play that game anymore , you would need to really carefully think your next move . You want to be all in your own ? okey....lets do it, no issue to me .
Well damn Grok AI is wrong again as it suggests Uncle Sam gets investors because...
This is a normal part of global finance, not a scheme to perpetuate debt spirals. The overall U.S. debt trajectory does raise long-term sustainability questions for economists across the spectrum.
Quote:DO Other countries buy US debt so you can keep up in the spiraling debt economy?
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Yes, many other countries (and foreign investors) do buy U.S. government debt — primarily in the form of U.S. Treasury securities (bonds, notes, and bills) — and this helps finance the U.S. federal government's borrowing needs as the national debt continues to grow (now well over $36 trillion in recent data).Foreign purchases aren't specifically done "so the U.S. can keep up in the spiraling debt economy," but rather because U.S. Treasuries are seen as one of the safest and most reliable investments in the world. They are backed by the full faith and credit of the U.S. government, which has never defaulted on its debt, and they offer a stable return in the world's primary reserve currency (the U.S. dollar).Key Facts on Foreign Holdings (Latest Available Data, Around Late 2025 / Early 2026)Top foreign holders (based on recent Treasury data, e.g., November/December 2025 figures in billions of USD):
- Total foreign holdings of U.S. Treasuries are around $9–9.4 trillion (a record high in some reports), representing roughly 30–32% of the debt held by the public (the portion not held internally by the government itself, like Social Security trust funds).
- The majority of U.S. debt (over two-thirds) is held domestically — by U.S. individuals, institutions, banks, the Federal Reserve, pension funds, etc.
- Foreign holdings have fluctuated but declined as a percentage in recent years (from peaks around 49% in 2011) even as absolute amounts rose, partly because domestic demand has been strong and total debt has grown faster.
Many other countries hold smaller amounts, and some holdings are through private investors or custodians rather than governments directly.Why Do Foreign Countries/Investors Buy U.S. Debt?Countries and foreign entities buy U.S. Treasuries for practical economic reasons, not charity or to enable U.S. overspending:
- Japan: ~$1,185–1,203 billion (largest holder, often for reserves and safe investments).
- United Kingdom: ~$866–889 billion (includes a lot through financial hubs and private investors).
- China (Mainland): ~$683 billion (has been declining over the years from higher levels).
- Others in the top ranks: Belgium, Canada, Ireland, etc.
In short, foreign buying helps keep U.S. borrowing costs lower (by increasing demand for Treasuries, which keeps interest rates down) and supports the dollar's global role. But it's a two-way street: the U.S. benefits from this demand, while foreign sellers/holders get a secure asset and influence over dollar-based assets.If foreign demand dropped sharply (unlikely in the near term), the U.S. would face higher interest rates to attract buyers, potentially slowing growth or increasing costs — but the system has adjusted before through domestic buyers and Fed actions.This is a normal part of global finance, not a scheme to perpetuate debt spirals, though the overall U.S. debt trajectory does raise long-term sustainability questions for economists across the spectrum.
- Safety and liquidity — Treasuries are a "risk-free" benchmark asset during global uncertainty.
- Reserve management — Many central banks hold dollars from trade surpluses (e.g., exporting more to the U.S. than importing) and invest them in Treasuries to earn interest without much risk.
- Currency stability — For export-heavy nations like China or Japan, buying Treasuries helps manage exchange rates (keeping their currency from appreciating too much, which could hurt exports).
- Diversification and returns — It's a stable way to park large sums of money.
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