Does The Debt Matter? China, Japan Say YES!

Does The Debt Matter? China, Japan Say YES!

Once again, another debt deal has come and gone with no resolution on how to fix the ever-growing debt problem.  While most may not care about what China and Japan think, they should for one simple reason. The Chinese and Japanese economies, outside of the United States, have most to lose or gain when it comes to the U.S. economy.

“Not only are they the second- and third-largest economies, but they lend Washington more money than any other single nation. China held $1.28 trillion in U.S. Treasury securities at the end of July and Japan owned $1.14 trillion. A default would likely have devastated the value of their holdings.”

As many Congressional members leave DC to head home, many investors are growing nervous as to whether Congress will tackle the debt problem.

No comments yet.

Leave a Reply