The U.S. Treasury Department said today (Thursday) that total foreign holdings of U.S. debt rose 1.1% in November to $5.72 trillion, putting foreign holdings 0.1% below the all-time high of $5.76 trillion it reached in March 2013.
In particular, China's holdings reached record levels, increasing 0.9% to $1.32 billion, and so did Japan, which boosted its holdings by 1% to $1.19 trillion. The two countries are the largest and second-largest foreign buyers of Treasury debt, respectively.
While the leverage this gives these companies bothers many Americans, it actually isn't a bad thing...
Money Morning Chief Investment Strategist Keith Fitz-Gerald appeared on FOX Business' "Varney & Co." this morning (Thursday) and discussed why it's vitally important to the U.S. economy that China and Japan keep buying:
Investors can make this one tiny adjustment today to see vastly heightened returns in 2014...Tags: China and Japan owning U.S. Debt, China and U.S. debt, China owning U.S. debt, U.S. Debt, U.S. Economy