Truth is elusive. Â But it’s a good thing we have math.
Our friends atÂ Business InsiderÂ know this, and put those two principles to work today inÂ this excellent and highly informative little slideshow, made even more timely by theÂ ongoing talks in Washington, D.C. aimed at staving off a U.S. debt default.
Here’s the big idea:
Many peopleÂ – politicians and pundits alikeÂ – prattle on that China and, to a lesser extent Japan, own most of America’s $14.3 trillion in government debt.
But there’s one little problem with that conventional wisdom: it’s just not true.Â While the Chinese, Japanese and plenty of other foreigners own substantial amounts, it’s really Americans who hold most of America’s debt.
Here’s a quick and fascinating breakdown by total amount held and percentage of total U.S. debt,Â according to Business Insider:
- Hong Kong: $121.9 billion (0.9 percent)
- Caribbean banking centers: $148.3 (1 percent)
- Taiwan: $153.4 billion (1.1 percent)
- Brazil: $211.4 billion (1.5 percent)
- Oil exporting countries: $229.8 billion (1.6 percent)
- Mutual funds: $300.5 billion (2 percent)
- Commercial banks:Â $301.8 billion (2.1 percent)
- State, local and federal retirement funds:Â $320.9 billion (2.2 percent)
- Money market mutual funds:Â $337.7 billion (2.4 percent)
- United Kingdom:Â $346.5 billion (2.4 percent)
- Private pension funds:Â $504.7 billion (3.5 percent)
- State and local governments:Â $506.1 billion (3.5 percent)
- Japan:Â $912.4 billion (6.4 percent)
- U.S. households:Â $959.4 billion (6.6 percent)
- China:Â $1.16 trillion (8 percent)
- The U.S. Treasury:Â $1.63 trillion (11.3 percent)
- Social Security trust fund:Â $2.67 trillion (19 percent)
So America owes foreigners about $4.5 trillion in debt.Â But America owes America $9.8 trillion.
For a smart take on how President Obama and House Republicans should end gridlock over debt and deficits,Â see our new GlobalPost series The Negotiator, which features Wharton’sÂ negotiation guru Stuart Diamond.
And to bone up on China’s debt – another potentially big global economic headache –Â check out this interviewÂ with brainy-yet-coherent Northwestern University economist Victor Shih, who spoke with GlobalPost’s David Case.