How much of the U.S. national debt does China own? Not as much as you think.

China owns all our national debt?! No, that is a huge exaggeration.

It owns just under 2%. Our largest foreign debt holder is 🗾Japan, a close ally of the U.S.

Nevertheless, our national debt is $36 Trillion Dollars, mostly held by U.S. citizens, insurance co's, pension plans, Social Security Administration, Federal Reserve, and banks.

If you have money in CD's, money markets, and bank accounts, then you also own Treasury securities, as these are the building block of those assets.

💣 It is not a problem for the U.S. - yet. And that's the worry. We don't know when it will be a problem, nor do we know when too much is really too much.

✋ To be on the cautious side, it is better to not be in the position of getting to the point of finding out the real answer, because it will be too late to fix it without a severe economic downturn.

#usdebt #interestrates #inflation #personalfinance