[neutrino]

The debt card IMHO is a running joke in my book.

Really? And perhaps, with just a bit of encouragement, you might be willing to share the humor with us all? How is it that 1.5 Trillion USD held by China and Japan is so amusing? Do tell, please!

[maui_hawaii]

I can explain...but first where did you get that number? Its completely off.

China owns about 2% of US debt...thats no where near 1.5 trillion...not even close.

The debt market doesn't work like many think...

[maui_hawaii]

China actually holds I think less than 2%...but I will have to look around...Its definately not more than the 2% range at all.

[WillL]

See here.

China plus Hong Kong held about $200 billion in treasury securities as of Dec '03. Japan held about $545 billion in the same month.

The lesson is: if Japan decides to let the Yen float, America enters a recession. However, Japan's economy is so weak that doesn't seem likely for the forseeable future.