The U.S. owes China the most money with $1.1 trillion
There is no such thing as a perfect nation, in fact, in this chaotic world, it doesn’t matter how powerful your country is, there will always be flaws no matter how big or little it may be. As one of the most powerful countries in the world, you would expect that the United States would actually have nothing to worry about, well, it is quite the opposite. US president Donald Trump vowed to eliminate the national debt when he was elected as president, however, it may seem a little too impossible especially after their debt just hit an all-time high of $21 trillion. It is record-breaking in a not-so-great way. They are facing a lot of issues at the moment, especially with the president not being too friendly with other nations such as Russia and China, who are both considered to be now more powerful than the US, continue reading to find out more
US Debt Rises
The debt of the United States just hit $21 trillion, this is the highest in the history, according to the United States Treasury. This is all after Trump signed the suspension of the federal debt limit. The suspension indicates how the US government is actually allowed to borrow an unlimited amount of money until the 1st of March next year.
The United States Treasury said that the national debt immediately increased from $19.9 trillion last year to $21 trillion as of this moment, which means that ever since Trump took office officially last year, the debt had a $1.1 increase in a span of just over 12 months. The Committee for a Responsible Federal Budget said that this is would go higher especially with the newly signed suspension federal budget limit. It could approximately top with $2.1 trillion more for the next coming year.
When the national debt from the Obama administration raised from $10.6 trillion to $19.9, Republicans were outraged. However, Senator Rand Paul of Kentucky said that the Republicans now are doing exactly what the Obama administration was doing, especially with how much the Senate floor has actually spent just within the last month. Another senator Bob Corker said that this much debt can be considered as the “greatest threat to our nation”. However, the last time Trump actually talked about the national debt, he doesn’t seem too concerned even after it already hit $20 trillion last September. He even stated that he is indeed open to eliminating the debt limit, which he eventually did.
Marketwatch said that because of this signed suspension the debt is definitely expected to increase. This is not the very first time that the national debt had actually increased by more than a trillion dollars within just six months. The very first time the US actually hit a trillion dollar was when former president Ronald Reagan’s very first term. The Trump administration has yet to release a statement regarding the said record-breaking national debt increase.
Debt To China Now At $1.17 Trillion
When the $21 trillion national debt was announced by the U.S. Treasury, to which nation the U.S. owes the most money? Well, the answer is indeed China. Based on the most recent statistics, the Uncle Sam owes $1.17 trillion to China, which makes them “the largest foreign holder of the U.S. Treasury securities.”
Japan is actually not far behind with $1.1 trillion. The secret is to keep the value of their currencies lower than the dollar so that they could be export to the United States at a lower rate that could help their economy in a huge way. Trump is currently not very fond of China, especially after signing a memorandum regarding their tariff since
Trump is accusing Chinese businesses of stealing intellectual properties on American tech companies. Chinese products cost less so people would want it more and this is one of the reasons why China is actually keeping their currency rate low. The lower it is, the cheaper the exports are.
China has been allegedly trying to replace the U.S. dollar as a global currency with their Chinese Yuan, but the Chinese government never really confined nor deny the reports. Economists said that this is the major reason Why China loves the fact that they are the largest foreign holder of the country. It is just all about business, if your competitors are wise, be sure to be the wisest man in the room.