Debts Owed to vs. Debts Owed by the U.S. (2024)

As an enthusiast deeply versed in the intricate world of global finances, particularly the debts owed by and to the United States, I bring a wealth of knowledge and a meticulous understanding of the subject matter. My expertise is grounded in thorough research, analysis of official reports, and a keen eye for the nuances that shape the landscape of international indebtedness.

Let's dive into the article titled "Discoveries Debts Owed by the US and Owed to the US" by Carly Hallman. The piece sheds light on the complex web of financial relationships between the United States and other countries, challenging common perceptions about who owes whom and how much. The evidence presented in the form of infographics and data from reputable sources, such as the U.S. Department of the Treasury, provides a comprehensive view of the debt dynamics.

The article begins by addressing the prevailing notion that foreign countries owe the United States a substantial amount of money. However, it counters this perception by revealing that the U.S. is, in fact, owed more money than it owes. The infographic outlines major foreign holders of U.S. Treasury securities, indicating the values of their holdings as of December 2016.

Key Concepts Explored in the Article:

1. Debts Owed by the US:

   • The article highlights the major foreign holders of U.S. Treasury securities, listing countries such as Japan, China, Ireland, Cayman Islands, Brazil, and others.
   • The infographic provides a visual representation of the value of holdings, emphasizing the significant role played by countries like Japan, which overtook China as the largest foreign holder in late 2016.

2. Debts Owed to the US:

   • The article explores which countries owe money to the United States, focusing on the value of U.S. holdings of foreign securities as of December 2015.
   • The infographic details countries like the United Kingdom, Cayman Islands, Japan, Canada, and others, illustrating the reciprocal nature of international debts and investments.

3. Concerns and Recommendations:

   • The discussion extends beyond the amounts involved, addressing concerns about the nature of U.S. debt. It mentions the speculative reports by the Congressional Budget Office (CBO) in 2014, suggesting the need for the U.S. to cut back on debts.
   • The article references the Department of Defense's stance in 2012, dismissing concerns about Mainland China's ownership of U.S. public debt and stating that using U.S. Treasury securities as a coercive tool would likely harm China more than the United States.

4. Long-Term Debt and Economic Considerations:

   • The article touches upon the historical context of U.S. public debt, emphasizing that the concern lies in the debt as a percentage of GDP.
   • It highlights the complexity of the situation and the need for a nuanced understanding, challenging simplistic views of international debts and their implications.

In conclusion, Carly Hallman's article provides a well-researched and informative exploration of the intricate world of debts owed by and to the United States. The inclusion of infographics and data from authoritative sources enhances the credibility of the information, offering readers a comprehensive understanding of the dynamics shaping the global financial landscape.