Where Does the US Borrow Money From?
A number of entities hold debt of the government of the United States, including foreign countries. The amount of debt that is held by foreign countries increased significantly over the course of the past decade. The total amount of foreign debt obligations of the U.S. is more than $3 trillion. While the overall foreign debt of the United States is likely to continue to grow, the pace of that growth is expected to slow into at least the immediate future.
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Top Ten Foriegn Creditors
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The United States currently owes a debt to 28 countries. There are 10 nations that hold the largest share of the debt owed by the United States to foreign countries. These countries are: People's Republic of China, Japan, Brazil, United Kingdom, Russia, Luxembourg, Taiwan, Hong Kong, Switzerland and Germany.
China
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China is the largest foreign creditor of the United States. The debt the United States owes to China is approaching $1 trillion. Many experts believe that China decided to slow the pace of lending to the U.S. and that the amount of debt owed by the United States to that nation will remain relatively constant into the future. Twenty-five percent of the overall U.S. foreign debt is owed to China.
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Japan
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A great deal of media attention is paid to the amount of money the United States owes to China. However, the U.S. owes a comparable amount of money to Japan. The difference between the debt owed to China and to Japan is approximately $100 billion. About 20 percent of the overall U.S. debt is owed to Japan.
Other Foreign Creditors
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With the international or foreign debt of the United States running between $3 trillion and $4 trillion, some of the other creditors of the U.S. include the Republic of Ireland, Singapore, Thailand, Mexico, India, Turkey, South Korea, Norway, France and Israel. Some of these nations are not known as economic powerhouses. The governments of these nations elected to lend to the U.S. considering such a financial transaction to be an investment in their economic futures.
Smallest Creditors
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Four countries maintain the smallest debt load in its lending with the United States: Chile, Sweden, Philippines and Colombia. These countries have extended financing to the United States between approximately $11 billion and $15 billion.
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References
- Photo Credit Jsyvrsn, Everystockphoto.com
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Comments
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Okay, I think everyone is being a little bit unfair. I hate just as much as the next person, but I think we forget that the U.S is always there when there is a natural disaster or if there is a war to be fought. And these things cost a lot of money. The majority of our debt accrued during wars. Isn't that evidence enough that our government hasn't accrued most of its debt because of wanting a "spoiled" lifestyle? And plus the more we spend, the bigger the deficit, and the more we need to borrow to cover that deficit.
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oh my god ur ignorant!
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want respect for your article? Learn to spell foreign and you just may get it, doubtful but maybe.
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The solution is not borrowing! How are we ever going to pay this debt.
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Crazy!!
