China has divested 97% of its holdings of U.S. Treasury bills

Who increased the debt? – h

According to the U.S. Treasury, China has divested 97% of its holdings of U.S. Treasury bills, falling from a peak of $210.4 Billion in May 2009, to $5.69 Billion in March 2011. T-bills mature in one year, or less and are sold to fund the nation’s debt. Chinese holdings of U.S. Treasury bills are reported in column 9 of the Treasury report linked here.
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The cost of fighting a decade-long war was not funded. In fact, it was de-funded, because taxes were cut. That has NEVER been done in our nation’s history. NEVER.

Only an utter incompetent would cut income and increase spending. And yet, that’s exactly what happened.

Tax revenues as a %age of GDP gradually rose from 1995-2000 from ~28% to 30%, then gradually fell to ~26% in 2005. Since 1945, tax rates have continually fallen, yet it was during that time when tax rates were highest that our nation flourished, infrastructure was created, population and economic opportunity expanded, and small businesses flourished.

According to the United States Treasury, on January 20, 2009:
Date – 01/20/2009
Debt Held by the Public – 6,307,310,739,681.66
Intragovernmental Holdings – 4,319,566,309,231.42
Total Public Debt Outstanding – 10,626,877,048,913.08

01/20/2012
10,482,317,023,993.23
4,753,954,855,799.55
15,236,271,879,792.78

01/19/2001
Not Available
Not Available
5,727,776,738,304.64

01/20/2009
6,307,310,739,681.66
4,319,566,309,231.42
10,626,877,048,913.08

Measured as a share of the Gross National Product, the CIA 2011 estimate is 104.1%; while the International Monetary Fund states 2011 figures as 102.94%.

The CIA World Factbook says this about the United States’ economy:

“The global economic downturn, the sub-prime mortgage crisis, investment bank failures, falling home prices, and tight credit pushed the United States into a recession by mid-2008. GDP contracted until the third quarter of 2009, making this the deepest and longest downturn since the Great Depression. In 2010 and 2011, the federal budget deficit reached nearly 9% of GDP; total government revenues from taxes and other sources are lower, as a percentage of GDP, than that of most other developed countries. The wars in Iraq and Afghanistan required major shifts in national resources from civilian to military purposes and contributed to the growth of the US budget deficit and public debt – through 2011, the direct costs of the wars totaled nearly $900 billion, according to US government figures.”

According to the U.S. Treasury, China has divested 97% of its holdings of U.S. Treasury bills, falling from a peak of $210.4 Billion in May 2009, to $5.69 Billion in March 2011. T-bills mature in one year, or less and are sold to fund the nation’s debt. Chinese holdings of U.S. Treasury bills are reported in column 9 of the Treasury report linked here.

While the President proposes budgets, it is the House of Representatives (i.e.,Congress) through the Appropriations Committee, that controls much of the budget, not the president.
Source: Debt to the Penny – www.TreasuryDirect.gov/NP/NPGateway

• What is the Debt Held by the Public?
The Debt Held by the Public is all federal debt held by individuals, corporations, state or local governments, foreign governments, and other entities outside the United States Government less Federal Financing Bank securities. Types of securities held by the public include, but are not limited to, Treasury Bills, Notes, Bonds, TIPS, United States Savings Bonds, and State and Local Government Series securities.

• What are Intragovernmental Holdings?
Intragovernmental Holdings are Government Account Series securities held by Government trust funds, revolving funds, and special funds; and Federal Financing Bank securities. A small amount of marketable securities are held by government accounts.