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US, China & Russia May Hold Talks on Restructuring US’s Massive Debt Under Trump

Russia, China and other emerging market economies have intensified the sale of holdings in US government bonds. Russian financial experts suggest that if the selloff continues, and President-elect Trump moves forward on his spending promises, Washington, Beijing and Moscow may end up holding talks with creditors on restructuring US debt.

The latest figures made available by the US Treasury Department on foreign holdings of US government debt show that even as total investment into US treasury bills has grown, the stakes of China and Russia have dropped off significantly, from $1,258 billion to $1,157 and $89.1 to $76.5 billion, respectively. The drop, consisting nearly $100 billion (or 9.1%) of China’s total holdings, and $12.6 billion, (or 14%) of Russia’s, saw Russia drop one spot from the 18th to the 17th largest holder of US debt. China remains the number one foreign stakeholder, but pulled out over $28 billion just between August and September. – READ MORE