China Is Now Only the 2nd Largest Holder of US Debt

China's reluctance to buy any more, and Tokyo's buying binge put Japan in top spot

In recent months, many were wondering if, or rather when, as a result of the ongoing trade war, China would lose its status as the largest US foreign creditor. The answer, according to the just released TIC data: this happened in June, although not as a result of a major drop in Chinese Treasury holdings, but rather thanks to a dramatic surge in Japanese holdings of US paper.

Indeed, while in June China added a modest $2.3 billion to its Treasury holdings after three consecutive months of sales, bringing its total to $1.113 trillion…

… it was Japan that stole the show with a whopping $21.9 billion in Treasuries added in June, and a whopping $58.9 billion in May and June, the biggest two month increase since June 2013.

 

As shown in the top chart, the last time Japan held the position as America’s largest foreign creditor was May 2017.

China’s US treasury holdings have come under increased scrutiny in the trade dispute amid speculation that the Asian nation could sell Treasuries in response, especially after a former Chinese central banker hinted over the weekend that a treasury dump is certainly possible: “The U.S. believes, in a geopolitical point of view, it’s being contained by China with China’s holding of its sovereign bonds,” said Chen Yuan, former deputy governor of the PBOC. “That means the U.S. is not completely without weakness.”

And while China has yet to activate the nuclear option, at least we now know which country’s retirees are the biggest US Treasury bagholders. Except for America[‘s own of course.

Source: Zero Hedge

10 Comments
  1. Binaj says

    Japan needs some jihadists attack for it financially is responsible for murder of peopld in middle east

  2. Garry Compton says

    The last statement said it all – the US/NWO Gov says it borrowed 2.3 Trillion from the Soc. Sec. Fund , and left an IOU . An IOU ? For probably closer to 4 trillion dollars – 4 Friggin Trillion dollars ? Time for a peoples – Bail IN – on the corrupt phoney Gov.

    1. Mary E says

      Then the US govt tells the people that their Social Security benefits will be cut back because of so many people taking out their money in small increments!
      The US govt has’ borrowed’ from the Soc Sec trust fund for decades and never returned a dime!! That is FRAUD! Out and out theft!

  3. JustPassingThrough says

    murikan vassal state off the coast of CN.
    soon to be totally irradiated of their own doing.
    not soon enough to stop the whale slaughter.
    https://countercurrents.org/2019/07/again-whale-slaughter-again-japan

  4. John C Carleton says

    It is Usury debt, not real anyway.

    Was any gold or silver loaned?
    No, just paper and ink.
    Pay em back with paper and ink.
    This debt is a scam run by the Ratschilds.

    Get proper rodent control.
    Cancel ALL Usury debt, worldwide.
    Hold Fair Common Law Trials, Fair Hangings, WASHINGTON DC.
    Start over.

    1. Ray Douglas says

      The Rockefeller cabal is the major backers of the dollar $. The Rothschild’s are the dollar’s $ biggest enemy.

      1. John C Carleton says

        Rothrats higher in the order of evil, pedophulia, Satanism / zionism than Rockscum.

        Divide the goy and conquer.
        Rockscum take orders from Ratschild.

        1. Ray Douglas says

          You are wrong. The Rockefellers are the $dollar personified. The $dollar is their baby which is why the Rothschilds are backing China’s war on the $dollar.

          1. John C Carleton says

            The Ratschilds, and the Rocktards serve the same master, just different wings of the same evil bird.
            Just like the Republiphiles and the Demophiles, are the same evil bird, just different wings.

            You have tunnel vision.
            You think these two tools of their masters are enemies.
            They are doing a well choreographed dazzle the sheep with zionist BS dance.
            Their masters will get what they want, no mater which evil pedophillic Khazarioan clan is on top at the moment.

            Their Masters like to keep some infighting going between their minions.
            It is entertaining to their masters, and it keeps the two from getting together, plotting against their masters.

            As I said, the zionist snake dance also distracts the sheep from the reality, no matter which wing does what to humanity, the order to do the dirty deed, originated above their pay grade, and comes from the same source, no matter which wing is used to do what.

  5. Vish says

    Japan will be left holding the bag big time if it doesn’t dump the Dollar soon.

    The so-called “nuclear” option that ZeroHedge whines about is really other nations refusing to pay imperial tribute to America and its global Dollar Dictatorship … I mean Reserve Currency status… and finance the voracious black hole that is the United States of America.

    That is the underlying nature of America’s Dollar system and is what’s at stake.

    It is because of American Dollar Hegemony that America devours enormous amounts of goods and services from other nations and live beyond its means in exchange for IOUs to other nations that America will never honor.

    American Dollar Hegemony is also how the USA finances its war criminal military and its predatory aggressions against multiple nations around the planet.

    Averting World War III, Ending Dollar Hegemony And US Imperialism
    https://www.countercurrents.org/hensman171107.htm

Leave A Reply

Your email address will not be published.

Anti-Empire