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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http://j.mp/TiKM7J

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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: