Whilst China holds a very large amount of US debt ($1,095.2 billion). I was surprised to see this is surpassed by Japan which holds $1,28 trillion in US Treasuries, (from 'The Balance'):
'Current Foreign Ownership of U.S. Debt:
In January 2021, Japan owned $1.276 billion in U.S. Treasuries, making it the largest foreign holder. The second-largest holder is China, which owns $1.095 billion, with 'other' holding $3.2 billion of U.S. debt. Both Japan and China want to keep the value of the dollar higher than the value of their currencies. That helps keep their exports to the United States affordable, which helps their economies grow.'
For how long can such a dire fiscal situation continue? And are there any politicians in the USA with the wherewithal to reverse it or, at least, take action to prevent any further rise in its huge overseas debt? And what would be the fiscal consequences of a sharp decline the value of the US Dollar?
