Less Chinese money available to U.S.

A lot has been written lately about China focusing their stimulus efforts internally. The question looming for the U.S. is what is China going to do about their hefty U.S. public debt investment.

China is currently the largest holder of U.S. public debt, particularly Treasuries. But now that China is focusing on paying for its own stimulus package, who will finance U.S. debt?

China only recently surpassed Japan as the largest Treasury debt holder, so it makes sense that Japan would reclaim the crown.


It's a lot to debt. During the first part of 2008, China spent close to $50 billion per month on American bond markets.



http://www.nytimes.com/2009/01/08/business/worldbusiness/08yuan.html