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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,