Who Does America Owe the Most To – China or Japan?

Question, who is America’s biggest creditor, China or Japan?

The United Kingdom ranks third, holding some $338.4 billion in U.S. Treasury securities of $2.86 trillion overall, $110.6 billion more than in August.

Despite the global turmoil, one country has been buying up Treasuries, to the tune of $43.6  billion in September. Another country saw their treasure trove decrease by $12.8 billion.

$573.2 billion is held by Japan.

$585 billion is held by China.

Yup, remember the scare – Japan is going to buy up America. Now China is outbuying Japan. Nearly half the treasuries are owned by these two countries alone. Pretty soon it will be Asia is buying up America.

The difference, Japan has a population of 1/10th of China.

Chinese holdings of Treasuries are up 25% from September of 2007.

The holdings are up nearly 10-fold from September 2000.

But all is not good news for China. The Middle Kingdom is also a major owner of Fannie Mae-issued securities.