Source: CNN Money
Donald Trump says he can “make a deal” on America’s debt.
Last week, he implied that he could negotiate with America’s creditors to get them to accept a lower rate of repayment, such as 85 cents for every dollar.
It sounds shrewd, until you think about who would get hurt under this scenario. Who exactly owns the $19 trillion-plus of U.S. debt?
There’s been a lot of attention in recent years over China rising to become one of the largest holders of U.S. debt. China’s share of the debt is sizable — about 7% — but it’s hardly the largest holder of U.S. government bonds.
The top holder by far is U.S. citizens and American entities, such as state and local governments, pension funds, mutual funds, and the Federal Reserve. Together they own the vast majority — 67.5% — of the debt.
Foreign nations only hold 32.5% of the total.
Related: Why Donald Trump’s debt proposal is reckless
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