Saturday, July 07, 2012

"in vain do they worship me" - Foreign Debts of the US

The Tokyo Station under Repair, Tokyo

Foreign Debts of the US

The US is the largest owner of external assets and external debts.

But Japan is not.

List of sovereign states by external assets
RankCountryFinancial assets
1 United States35,543
2 Japan14,172
3 United Kingdom5,067
4 Germany4,934
5 China4,459
6 France3,995
7 Italy3,655
8 Canada2,711
9 Australia1,953
10 Spain1,777
11 Netherlands1,746
12 Taiwan1,623
13 Switzerland1,575
14 South Korea1,435
15 Brazil1,224
16 India989
17 Belgium918
18 Mexico819
19 Sweden739
20 Denmark587
21 Austria498
22 Singapore431
23 Portugal395
24 Malaysia348
25 Norway345
26 Ireland294
27 Russia282
28 Poland281
29 Greece276
30 Chile261
31 Finland240
32 Thailand211
33 South Africa205
34 Turkey191
35 Indonesia169
36 Czech Republic136
37 New Zealand124
38 Colombia115
39 Romania112
40 Hungary104
41 Argentina47
42 Croatia45
43 Slovenia42
44 Slovakia41
45 Ukraine41
46 Bulgaria38
47 Lithuania22
48 Estonia19
49 Kazakhstan17
50 Latvia14

List of countries by external debt
RankCountryExternal Debt[2]
US dollars
DatePer capita[3][4][5][6]
US dollars
% of GDP[7][8][9]
1 United States15,813,740,000,00026 June 201250,266103
 European Union13,720,000,000,00030 June 201027,86485
2 United Kingdom8,981,000,000,00030 June 2010143,009360
3 Germany4,713,000,000,00030 June 201057,755142
4 France4,698,000,000,00030 June 201074,619182
5 Japan2,441,000,000,00030 September 201019,14845
6 Ireland[10][11]123,058,047,00010 November 201126,820108.2
7 Netherlands1,884,489,600,0003rd quarter of 2010[12]226,503344
8 Italy2,223,000,000,00030 June 2010 est.36,841108
9 Spain2,166,000,000,00030 June 201018,26084
10 Luxembourg[note 1]1,892,000,000,00030 June 20103,696,4673,443
11 Belgium1,241,000,000,00030 June 2010113,603266
12 Switzerland1,200,000,000,00030 September 2010154,063229
13 Australia1,169,000,000,00031 December 2010est.52,59695
14 Canada1,181,000,000,00030 June 2011 est.29,62564
15 Sweden853,300,000,00030 June 201091,487187
16 Austria755,000,000,00030 June 201090,128200
 Hong Kong750,800,000,00031 December 2010est.105,420334
17 Norway643,000,000,00012 August 2011131,220141
18 China635,500,000,00031 December 2011 est.3965
19 Denmark031 March 201200
20 Greece532,900,000,00030 June 201047,636174
21 Portugal497,800,000,00030 June 201046,795217
22 Russia480,200,000,00030 November 2010est.3,23533
23 Finland370,800,000,00030 June 201068,960155
24 Korea, South370,100,000,00031 December 2010est.7,56737
25 Brazil310,800,000,00031 December 2010est.1,60815 

Yes, to your surprise, Japan has less foreign debts than the US, the EU, the UK, Germany and France.  But Japan has the largest foreign assets only next to the US.
A disturbing aspect of the U.S. external position has been the United States’ move from being the world’s largest creditor nation in the mid-1980s to the world’s largest debtor nation at present. Currently, the U.S. gross external debt position is around 120 percent of GDP while its net external debt position is more than 20 percent of GDP and rising.
It is also of concern that most of the U.S. external current account deficit is now being financed by central banks, particularly in the OPEC countries and China, rather than by private investors. Foreign central bank dollar holdings now exceed US$6 trillion, of which more than one-quarter is held by the Chinese central bank. Earlier this month, the Chinese premier expressed his unease about China’s very large exposure to changes in the value of the U.S. dollar that was posed by China’s holdings of U.S. government bonds.

The world of today has one big problem as the US relies on China in maintaining its financial balance.  China is financing the US.

But truth is this.  China imports, legally or illegally, Japanese technology and funds to have industrial capability.  China produces goods and products for Wal-Mart, Apple, and other US companies.  China receives a huge amount of dollars from the US.  And then China invests those dollars into the US financial market.    

The point at issue is whether it is possible that the US and China make war against each other for any interest.  It is not.  But, if a revolution and a civil war should occur in China, the US might be involved with its superior military capability.  Till the start of the 22nd century, this situation can happen in and around China.  The Chinese Communist Part will lose power.

Another possibility is that more and more Chinese will move to the US to live there as permanent residents.  Till the start of the 22nd century, about 30 million more Chinese might be living in the US whether or not on the permanent basis or the temporary basis.  

But, the peace would be maintained due to the presence of Japan.

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Mar 7:7 Howbeit in vain do they worship me, teaching for doctrines the commandments of men.
Mar 7:8 For laying aside the commandment of God, ye hold the tradition of men, as the washing of pots and cups: and many other such like things ye do.