Politifact Virginia: US debt to China is huge

RICHMOND, VA (WWBT) – He could easily be a candidate for governor once again. Terry McAuliffe found himself making news this week, weighing in on just how much American debt is owned by China. According to the former DNC chair it is a pretty staggering figure.

This is what he said on Hardball with Chris Matthews: "This is so offensive to independents and to people in this country today ... Who worry that China now owns $1.1 trillion of our debt, our trade deficit last year with them was a quarter of a trillion dollars."

1.1 trillion dollars of debt? From one country? Is that possible?  According to the reporters of Politifact Virginia it absolutely is. McAuliffe's claim is 100 percent correct.

Figures from the treasury department revealed the Chinese held $1.16 trillion in debt in February. The number is up from $892 billion just a few months ago. It is a lot of money, but according to Jacob Geiger of the Times-Dispatch, Terry McAuliffe had the figure correct.

"Yeah it's absolutely true. He had the numbers exactly right and in case you're wondering Japan is the second largest holder of American debt. They have just shy of $900 billion, of U.S. debt, U.S. treasury bills as treasury bonds third place is Great Britain down around $300 billion, but China far and away the largest holder," Geiger said.

And you can see all the information behind this week's Politifact Virginia report on their web site, www.politifactvirginia.com. And you can see all our past reports on my political blog, Decision Virginia.

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