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How Much US Debt Does Canada Own?
I found an interesting piece of data many Canadians have either overlooked or flat out just don’t know about. Canada has increased its holdings of US treasury securities by a whopping 794% since 2008. This is the biggest increase, from a percentage standpoint, of any country in the world. The next closest country to increase its holdings, on a percentage basis, is Britain, up 258% - a far cry from Canada’s increase. Only 4 countries have increased their holdings more than 100% since 2008. They are:
- Canada - 794.3%
- Britain - 258.6%
- India - 124.65%
- Egypt - 109%
Of those 4 countries, only Britain (3rd largest foreign debt holder of US treasuries) holds more US treasuries than Canada. India and Egypt hold a fraction of the amount Canada does, yet India’s economy is nearly the exact same size as Canada’s.
In 2008 Canada was the 24th largest holder of US debt. Since that time, it has climbed the ranks rapidly and now sits at 9th, holding $125 billion worth. In 2008 Canada owned just $14 billion.
The Canadian economy hasn’t grown enough to justify this surge in US debt purchases and is becoming dangerously overweight in US treasuries.
This is something all Canadian investors need to pay attention to.
Have a great week,
Aaron
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Re: How Much US Debt Does Canada Own?
I think the main reason Canada is buying so much American debt is because Mark Carney is another pawn in the American fiat currency shell game. Carney's pedigree reads like that of so many other central bankers - Goldman Sachs.
This build-up in US Treasuries will crush Canada when the long bond speculators lose faith and force interest rates to return to historical norms. Schiff has it right when he writes about the real crash, but he wrongly thinks Canada won't be as badly affected because he is unaware of the growth of our US treasury holdings. I say stack silver and follow the advise of Sprott and Schiff if you want to protect yourself. I'd also suggest taking my advice of getting a ten year or longer mortgage on any large debts you own to pass the interest rate risk on the banks.
Re: How Much US Debt Does Canada Own?
Hi Frank
Your right about the chicken and Custer so called events. But to add another point,. for what we bought from the securities, mremember they owe us big time.Some one smarter then me knows what they are doing, for them to spend the money on the US securities. Then again for thought , you and me as taxpayers , wonder why this money is not spent here at home??????
Youtake care
Re: How Much US Debt Does Canada Own?
How do you make money on the fact that Canada is buying American debt? It's about being informed which will help you make decisions on allocation later. Unless you partake in national bond auctions I suppose there is no immediate way to make money off of this information. Sorry to disappoint you there.
Re: How Much US Debt Does Canada Own?
The is not much us wee folk can do to change the direction of the world economy,but as Kevin O'Leary always asks. HOW DO I MAKE MONEY? So Aaron how does the little investor make money here?
Re: How Much US Debt Does Canada Own?
I believe it's for the same reason China, Japan, England, and anyone else who considers the US to be an important customer, keeps buying Treasuries. We have no choice at the moment. Without the US buying Canadian goods, Canada's economy collapses. The same ring trues for most all other net exporting nations (to the US).
Re: How Much US Debt Does Canada Own?
I think I said this before. It is like seeking Colonels Sanders' help to protect your chickens. Have no fear, USA will look after things or in the reassuring words General Custer "DON'T YOU WORRY ABOUT THOSE INDIANS"
Re: How Much US Debt Does Canada Own?
This old blog came up and interests me greatly Aaron. Why do you suppose Canada is buying up so much U.S. debt? I'm sure in 2012 ,it has continued.