[csmusaret]

Until a little over a year ago Japan owned more of our debt than China. I don’t remember everybody wringing their hands about being “owned” by Japan. Fact is most of our debt is owned by Americans.....http://www.treas.gov/tic/mfh.txt

[Miss Marple]

Thanks for the link to that chart. Although Americans might hold the majority of the debt (I had trouble finding that from reading the chart) China does hold quite a bit.

The difference between Japan holding the Majority and China holding it is that Japan doesn't have a policy of expanding it's territory, which China does.

Actually, I don't like us owing too much money to anyone, even if it was Canada or Great Britain.

[kabar]

Fact is most of our debt is owned by Americans

And that is a good thing? Regardless, if the Chinese and/or the Japanese stopped buying our debt or started to cash out, they would plunge this country into economic chaos. And that gives them an enormous influence over us, the world's largest debtor nation.

[Andy from Chapel Hill]

At some point, the Obama administration will change the rules for pensions (ERISA-Dept of Labor) and IRA’a/401(k)’s to mandate that a small, but increasing percentage, of these plans invest in Treasury instruments. TIPS would be the best, but who knows. Basically, the US government would issues IOU’s to the citizens to make the debt roll-over.