Foreign governments and central banks are dumping their holdings of United States debt, according to the latest data from the Treasury Department.
According to the report, foreign holdings U.S. Treasury securities rose by just 0.7 percent to $6.18 trillion in January.
China, the biggest foreign owner of U.S. debt, reduced its holdings by 0.7 percent to $1.24 trillion. Ireland, one of the biggest owners of U.S. debt, slashed its holdings by $13 billion to $252 billion, followed by Canada ($2 billion), Mexico ($3 billion) and France ($3 billion).
Japan, meanwhile, raised its holdings by 0.1 percent to $1.12 trillion. Other nations who boosted their holdings were Belgium, India, Switzerland, Taiwan and the United Kingdom.
The U.S. national debt has surpassed the $19 trillion mark. Since the federal budget deficit is expected to go up in the coming years (SEE: Report: U.S. budget deficit, debt set to soar after Obama exits White House), the debt is certainly to climb. In order to maintain the status quo, Washington needs to see strong foreign demand for its debt.
The national debt now stands at a record $19.1 trillion. With the federal budget deficit projected to grow, the United States will need to see continued strong foreign demand for Treasury debt.
When are the clowns in D.C. ever going to cut a dime out of the budget? There has to be some programs that can be cut. USDA, FDA, EPA, DoD, DoE, DoED, all need to be cut 10%. I mean would the world end if these cuts where made.
No, the “world” would not end, just their justification for more spending of money that does not exist.
They know what they are doing, they are beholden to the Ruling Class Elitist who see that soon this economy will collapse in a heap.
Always remember, especially when you consider those living on the government dole: An Empty Stomach makes for a Willing Slave.