Bush Sez: US Government Bankrupt - "US Treasury Bonds Worthless"...

WHEN THERE ARE NO FREAKING JOBS. Do the math GW. Actually on second thought don't try to do the math.

We'd have to pay out over a $trillion in foreign IOUs.

Over time, the Asian exporting countries have been placing a big percentage of their exchange earnings into US Treasuries. The leader continues to be Japan, with China now the #2 foreign holder of US debt. Reportedly, China is shifting its portfolio away from US investments. The Saudis and other Gulf oil exporters bailed out of Treasuries a long time ago, and aren't even on the list anymore.

http://www.msnbc.msn.com/id/7294906/

Who holds U.S. Treasury securities as of January, 2005

Amount in billions $ Percentage of foreign-held Treasury debt
Japan 701.6 36%
Mainland China 194.5 10%
United Kingdom 163 8%
Caribbean Banking Centers* 92.5 5%
Korea 67.7 3%


*Bahamas, Bermuda, Cayman Islands, et al.
(Source: US TREASURY DEPT)
--------------------------------------------------------------

And, look where things stood ten, twenty years ago:

http://www.treas.gov/tic/shl94sum.html

Table 5

Foreign Portfolio Investment in Long-Term Securities

Top 10 Investing Countries

(Amounts in $ Billions)

Country
1978
1984
1989
1994

Japan
12
28
180
230

United Kingdom
13
43
108
168

Germany
9
30
58
68

Canada
8
22
69
58

Switzerland
13
22
35
57

Middle East Oil Exporters
19
45
54
45

British West Indies
‘*’
2
7
37

Taiwan
‘*’
‘*’
13
35

Singapore
‘*’
6
13
34

Belgium
N.A.
N.A.
N.A.
32

Rest of World
-
-
-
319

Unknown
‘*’
7
122
161

Total
99
268
847
1,244


Note: N.A. means no data is available

‘*’. means greater than zero but less than the minimum amount presented in the table

As can be seen, Japan and the United Kingdom have maintained their positions as the top portfolio investing countries in U.S. securities. However, the rate of growth for Japan has decreased significantly. Between 1984 and 1989, Japanese holdings increased from $28 billion to $180 billion, or over 500%. Between 1989 and 1994 their holdings increased by only 28%.

On the other hand, holdings of the Middle East Oil Exporting countries (Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates) decreased from $54 billion to $45 billion. In 1984, these countries together held 17% of foreign holdings of U.S. long-term securities. By 1994, their holdings represented less than 4% of the total held by foreigners.

The Unknown line is largely Eurobonds held in bearer form for which no ownership information is available. The level of Eurobond holdings have increased significantly since the 1984 survey as the size and importance of the Eurobond market has increased.

on the Trust Fund bonds.

And, as you point out, T-Bonds keep the US Economy afloat...

Is that what the President is saying? That government-issued paper is NOT backed by the full faith and credit of the federal government?

I hate to break it to Chimpy, but it's against the law for anyone to say that. I know that he's accustomed to running up huge debts and then skittering away on his family name with a pocketful of the long green while his daddy's friends clean up the mess, but this is a little bit different.

As Stupidhead himself is fond of reminding us, that's our money he's throwing out the window. Still happy with your choice, Supreme Court?