No Red Dawn – U.S. Citizens Still Responsible For Most of Our Debt
posted at 9:24 pm on September 18, 2012 by Matt Vespa
I know the talk about China, besides government being too large, is always something that comes up in a conversation about the national debt. Many late night talk show hosts quip about our relationship with China, but I assure you that the tiger economy doesn’t own as much of our debt as many believe. Amidst the upcoming release of the Red Dawn remake, which was originally set to have the Chinese as our enemy before executives opted to maintain access to the Asian box office – I’m sure the discussion would have been similar: Debt = China = end of sovereignty.
However, according to MyGovCost.org, 42.8% of American citizens and institutions are responsible for our $16 trillion dollar debt compared to 8.2% held by China. However, as Craig Eyermann wrote on September 16:
Although the United States’ total public debt outstanding has now exceeded 16 trillion dollars, at least as of 31 August 2012, the relative percentages for the major holders of all the debt issued by the U.S. government shown above are likely unchanged.
Taking that larger national debt figure into account, as well as the likely growth in the number of U.S. households, we estimate that the current national debt burden per U.S. household is roughly $131,113. Over the last four years, that’s up by $49,129 per U.S. household from the $81,984 per U.S. household figure set in 2008.
So, although our situation is still dismal – we shouldn’t expect Chinese troops invading our shores due to default. Furthermore, given the thickness of the dome that engulfs Washington D.C. – we shouldn’t expect members of the political class to act on the sheer amount of debt each household and citizen owes the government. Right now, the “Red Dawn” threat is coming from the regulation onslaught against business in this country.
P.S. – The villains in the Red Dawn remake are North Korean – Is anyone else puzzled by this?