Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

5/7/2012 (3 years ago)

Catholic Online (www.catholic.org)

In spite of natural disasters of last year, Japan bouncing back with a vengeance

Japan suffered more than any nation had a right to bear last year, when a 9.0 earthquake struck off the coast of Japan last March and sent a tsunami crashing into the Fukushima Daiichi nuclear power plant. There were fears that Japan would have a difficult time recovering in its place in the global economy. Never fear: Japan will soon overtake Chine in buying off U.S.-held debt.

Japan suffered more than any nation had a right to bear last year, when a 9.0 earthquake struck off the coast of Japan last March and sent a tsunami crashing into the Fukushima Daiichi nuclear power plant.

Japan suffered more than any nation had a right to bear last year, when a 9.0 earthquake struck off the coast of Japan last March and sent a tsunami crashing into the Fukushima Daiichi nuclear power plant.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

5/7/2012 (3 years ago)

Published in Business & Economics

Keywords: Japan, China, U.S., T-bills, natural disasters


LOS ANGELES, CA (Catholic Online) - According to data published by the U.S. Treasury Department, Japan is buying more U.S. government debt, while China has started to decrease its holdings of U.S. debt.

Between the last day of June 2011 and the last day of February 2012, entities in Japan increased their holdings of U.S. Treasury securities from $881.6 billion to $1.0959 trillion. Concurrently, entities in the People's Republic of China decreased their holdings of U.S. Treasury securities from $1.307 trillion to $1.1789 trillion.

The Japanese increased their net holdings of U.S. government debt by $214.3 billion while the Chinese decreased theirs by $128.1 billion in just eight short months. From the end of June through February, the Japanese have closed the gap between their holdings of U.S. debt and China's holdings of U.S. debt by about $53.13 billion per month.

The Chinese owned $425.4 billion more in U.S. government debt than the Japanese at the end of June of last year. By the end of this February, the Chinese owned only $83 billion more than the Japanese. If the June-through-February trend continued through March and April, for which data has not yet been reported, the Japanese may have already overtaken the Chinese in ownership of U.S. debt.

Four days after the earthquake and tsunami hit Japan, the Associated Press predicted that "Some worry that Japan will sell some of its vast holdings of U.S. government debt to raise money. Doing so would push the prices of U.S. Treasury bonds down and yields up, raising U.S. interest rates."

A report in the New York Times on March 15, 2011, made a similar observation.

"Analysts also rushed to calculate the 'repatriation risk' as Japanese investors with money abroad rushed to bring it home--for reconstruction or to have readier access to their savings," the Times reported. "With interest rates at home near zero, Japanese investors have looked elsewhere for higher yields. Japan is the second largest holder of United States Treasury bonds, after China, and any withdrawal on a large scale could put some upward pressure on interest rates in the United States."

In stark contrast, the Japanese did not start drawing their money out of the United States - but China did.

While diminishing their overall holdings of U.S. Treasury securities since last June, the Chinese, over the past three years, have almost entirely divested from U.S. Treasury bills, which are notes that mature in one year or less. Chinese ownership of T-bills peaked in May 2009 at $210.4 billion. By the end of February, according to the U.S. Treasury, Chinese ownership of T-bills had dropped to $3.76 billion-a decline of 98 percent.

By contrast, the Japanese have increased their ownership of U.S. T-bills over the past three years. In May 2009, the Japanese owned about $60.4 billion in T-bills, according to the U.S. Treasury. By the end of February 2012, they owned about $63.1, an increase of $2.7 billion, or about 4.5 percent.

.

---


Pope Francis: end world hunger through 'Prayer and Action'


Copywriter 2015 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for July 2015
Universal:
That political responsibility may be lived at all levels as a high form of charity.
Evangelization: That, amid social inequalities, Latin American Christians may bear witness to love for the poor and contribute to a more fraternal society.



Comments


More Business & Economics

Big name companies demand Planned Parenthood to remove names off list of corporate donors Watch

Image of

By Nikky Andres (NEWS CONSORTIUM)

Representatives from Coca-Cola, Ford Motor Co. and Xerox openly state they've requested Planned Parenthood to take their company's names out as corporate donors to the controversial organization. MUNTINLUPA, PHILIPPINES (Catholic Online) - Planned Parenthood is now ... continue reading


Gun sales in the United States dramatically boost after massacre shootings Watch

Image of

By Atarah Haely (NEWS CONSORTIUM)

FBI's latest background check data shows the gun industry spiked in sales at about 11 percent last June. There are about 1.53 million background checks done, making it the busiest June ever since the agency started keeping track in 1999, according to CNN. The massive ... continue reading


Microsoft slammed for thousands of layoffs while demanding increase in immigration Watch

Image of

By Atarah Haely (NEWS CONSORTIUM)

About 7,800 Microsoft employees are in line to be fired, according to a company announcement last Wednesday. Most workers are from the seemingly failing mobile phone business, while Microsfot is said to fire a majority of Nokia's remaining employees ever since ... continue reading


Subway and Jared break up after controversial police raid at spokesman's home Watch

Image of Jared Fogle is known for his massive weight loss on a

By Nikky Andres (NEWS CONSORTIUM)

Subway spokesman, Jared Fogle's house was raided by FBI agents and Indiana State Police, two months after the former executive director of Fogle's foundation was arrested with charges of child pornography. MUNTINLUPA, PHILIPPINES (Catholic Online) - In their statement, ... continue reading


'Enough with all the rules' firework industry calls out to Obama Watch

Image of

By Nikky Andres (NEWS CONSORTIUM)

This year, more states have allowed people to buy pyrotechnic materials, such as sparklers and Roman Candles. In fact, this year has been wonderful for fireworks manufacturers, since the projected 2015 sales of celebratory explosives are estimated to top $1 billion. ... continue reading


Whole Foods accused of greatly overcharging customers Watch

Image of

By Nikky Andres (NEWS CONSORTIUM)

Whole Foods, the American foods supermarket chain that specializes in organic goods, has been accused of massive overcharging. The New York City Department of Consumer Affairs explained they have discovered "systematic overcharging for pre-packaged foods" at the city's ... continue reading


Strange and powerful 'boat swallowing' vortex appears in Lake Texoma Watch

Image of

By Nikky Andres (NEWS CONSORTIUM)

A strange, giant vortex, estimated to be around 8-feet in diameter, has appeared in Lake Texoma. This occurrence is surprising and perhaps threatening. However, there is an explanation. MUNTUNLUPA, PHILIPPINES (Catholic Online) - Lake Texoma is known as one of the ... continue reading


Is it time to stash money under mattress? 'It's time to hold physical cash,' fund manager says Watch

Image of Ian Spreadbury declined to predict the exact trigger but said it was more likely to happen in the next five years rather than 10.

By Catholic Online (NEWS CONSORTIUM)

Is it time to cash your paycheck and then stick it into a hatbox for a rainy day? According to British fund manager Ian Spreadbury, who invests more than £4 billion of investors' money is gravely concerned that a "systemic event" could rock markets. The upset ... continue reading


In spite of strong showing, Ron Paul predicts Apocalypse on Wall Street Watch

Image of Ron Paul has predicted economic doomsday previously. As stocks continue to make new highs, he remains just as convicted as ever that there

By Catholic Online (NEWS CONSORTIUM)

Things seem to be on an even keel right now but according to former Representative Ron Paul, the Federal Reserve's easy money policies have left stocks and bonds are on the verge of a massive collapse. LOS ANGELES, CA (Catholic Online) - "I am utterly amazed at ... continue reading


The U.S. public is asked - Which woman do YOU want to see on the new $10 bill? Watch

Image of The new $10 bill will also include a

By Catholic Online (NEWS CONSORTIUM)

It's a question being posed to the American public... which American woman do they want to see on the new $10 bill? The revamped $10 bill will go into effect in the year 2020. U.S. Treasury Secretary Jack Lew wants the next generation of U.S. currency to ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Gospel, John 11:19-27
19 and many Jews had come to Martha and Mary to ... Read More

Saint of the Day

Saint of the Day for July 29th, 2015 Image

St. Martha
July 29: "Jesus loved Martha and Mary and Lazarus." This unique ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter