We’re told we’re humungeously in debt. Well it may not be all that bad.
The Voice of America comes up with some heartening news that the UK owns $347 billion worth of US Treasury Securities.
Interestingly, the UK is the third largest holder of US Treasury Securities after China with $1.16 trillion and Japan with $916 billion.
And what do we owe: Well it’s a little more than $347 billion – our debt now stands at £900 billion.
But if we can immediately pay off £200 billion of that £900 billion by liquidating our US Treasury holdings, then maybe things aren’t that bad.
Furthermore the UK is the largest foreign direct investor in US business, according to the CRS report for Congress, with investments totalling $410 billion in 2007.
If you assume that means we could knock another £300 billion off our debt level, then our net debt more than halves to £400 billion.
26% of our £1.5 trillion GDP.
Not exactly on the verge of bankruptcy as some of our politicos would have us believe.