Foreign Debt Holdings Exceed Domestic Debt Holdings

April 5, 2010

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Veronique de Rugy, a senior research fellow at the Mercatus Center, relying on Department of Treasury’s Financial Statement of the United States data has constructed a chart showing how Foreign holdings of our debt have outpaced Domestic holdings.

Rugy says, “While the ownership of our debt may be theoretically neutral, there is a case to be made that this debt reliance gives significant bargaining power to individual foreign governments.”

See also April 5, 2010 San Francisco Chronicle, National debt seen heading for crisis level

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