Where Is the Debt?

The relentless fiction about the debt and where is goes and comes from is imposing.  The fiction is not that there is a spectacular US debt but that those that speak of it seem to have no idea where it comes from or where it goes.

In the Denver post Sunday there is an interesting article titled "US has wealth and resources, but it's paid for past priorities".   Click on the title to see the link.

The cool thing for me was the accompanying graphic that shows where the debt is owed and which administrations accumulated it.

Foreign ceditors account for about 32% of the debt - that's not trivial.  Does China own the US?  Not quite the credit China has granted accounts for about 8.5% of the total.   We certainly aren't owned by China.

The big debt (44%) is where we have borrowed is from the Social Security Trust, other Government trusts ( i.e. Fed pension funds) and the Federal Reserve.  These are loans from the you and I which I personnally don't recall authorizing.  It seems like every piggy bank the Government has has been dipped into. 

The last 24% is for those who invest who enter the game assuming a risk but a low risk , to date, on Government securities. 

So why is China the bad guy?   Becasue China has had money nthe last few years. When W wanted cash for his littel war with Iraq is so happens that China was minding the bank and loaninghte cash.   I wonder how much of that $6.1T in Bush debt is from China.   I bet alot.