JAPAN - Top Foreign Holder of US Debt

Arno Froese

Entities in Japan have surpassed entities in Mainland China as the top foreign holders of U.S. Treasury securities, according to the latest estimate published by the Treasury.

In May of this year, the Chinese owned $1,110,200,000,000 in U.S Treasury securities and the Japanese owned $1,101,000,000,000. In June, however, Chinese ownership of U.S. Treasury securities rose only to $1,112,500,000,000 and Japanese ownership climbed to $1,122,900,000,000.

That marked the first time since May 2017 that entities in Japan have owned more U.S. Treasury securities, as estimated by the U.S. Treasury, than entities in China.

In May 2017, the Japanese owned $1,111,500,000,000 in U.S. Treasury securities and the Chinese owned $1,102,200,000,000. In June 2017, Chinese ownership of U.S. Treasury securities increased to $1,146,500,000,000 and Japanese ownership declined to $1,090,300,000.000.

Chinese ownership of U.S. Treasury securities, according to the estimates, peaked in November 2013 at $1,316,700,000,000.

-www.cnsnews.com, 27 August 2019

Arno's commentary

Japan, communist China and many European countries are the ones who are accumulating wealth; or, in plain words, helping to pay the US’s deficit. Excessive proclamations about America’s manufacturing prowess—demonstrated with large letters, “Made in America”—have not helped American exports significantly. Experts will argue on the reasons for this, which seem to be innumerable. This writer assumes that language is the greatest obstacle. While English is the official global business language, to sell a product, one has to speak the language of the country. The person must be familiar with their customs, regulations, laws, expectations—and speak their language. The Japanese, as well as the European business world proficiently speak multiple languages; thus, are able to sell their products to customers face-to-face. Germany, for example, has no problem with China when it comes to their trade balance, although manufacturing labor costs in Germany are significantly higher than in the USA.

Here we may use Scripture as a guideline. The apostle Paul gives an example: “For though I be free from all men, yet have I made myself servant unto all, that I might gain the more. And unto the Jews I became as a Jew, that I might gain the Jews; to them that are under the law, as under the law, that I might gain them that are under the law; To them that are without law, as without law, (being not without law to God, but under the law to Christ,) that I might gain them that are without law. To the weak became I as weak, that I might gain the weak: I am made all things to all men, that I might by all means save some” (1 Corinthians 9:19-22).

Arno Froese is the executive director of Midnight Call Ministries and editor-in-chief of the acclaimed prophetic magazines Midnight Call and News From Israel. He has authored a number of well-received books, and has sponsored many prophecy conferences in the U.S., Canada, and Israel. His extensive travels have contributed to his keen insight into Bible prophecy, as he sees it from an international perspective.

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