Question

The US Public Debt was $18.2 trillion in 2015. This was up from $16.4 trillion in 2012. In 2015, Foreign ownership was 34% of that total, or $6.1 trillion. Of this $6.1 trillion, China held 20%, Japan 18%, and oil exporting nations 5%.

1) How does the fact that 34% (and increasing) of the debt is held by foreigners make you feel?
2) What are potential risks or pitfalls with foreigners owning an increasing amount of the US Debt?
3) How concerned should we feel?

Answer 1

1) The fact that 34% and increasing of the debt of The US is held by Foreigners is worrisome

2) some of the pitfalls to this increasing debts owned by Foreigners includes : partial loss of the country sovereignty, devaluation of the dollar and difficulties in meeting repayment conditions

3 ) we as a Nation should feel very concerned and sort for other means of funding instead of accumulating foreign public debts .

Step-by-step explanation:

Total debt owed in 2015 = $18.2 trillion

Total debt owed in 2012 = $ 16.4 trillion

increase in debt = $1.8 trillion percentage increase = 1.8 / 16.4 * 100 = 10.98%

1) The fact that 34% of the debt of The US is held by Foreigners is worrisome

2) some of the pitfalls to this increasing debts owned by Foreigners includes : partial loss of the country sovereignty, devaluation of the dollar and difficulties in meeting repayment conditions

3 ) we as a Nation should feel very concerned and sort for other means of funding instead of accumulating foreign public debts .