How did we end up owning china close to trillion of dollars ?

Question

.... some of that money end up in state of israel how this happened.

Answer 1

It's because we Americans are in a state of denial about our debt.  President Reagan came up with the idea that we could balance the budget by taxing less and spending more.  It was like one of those diets where you lose all the weight you want by eating nothing but chocolate and Mexican food.  At the time, Reagan's idea had the great advantage of never having been tried.  But it was tried, and it was a spectacular failure.  In one term Reagan doubled the entire pre-existing national debt.  Well into his second term, Reagan was still insisting that our revenues would rise to cover the cost of the tax cuts.  By the time he left office he had TRIPLED the whole national debt that was in place when he took office.  Reagan turned the US from the world's biggest creditor nation to the world's biggest debtor nation.

But about half of all Americans believed that Reagan's plan had actually worked. Because they really WANTED to, so they just ignored the evidence to the contrary.   GHW Bush, who succeeded Reagan, who had called Reagan's plan 'voodoo economics' in the 1980 election, now pretended to believe in Reaganomics.  Like Reagan, he promised to balance the budget in three years, but added another couple of trillion to the debt.

In fact the only president since 1980 who reduced the size and cost of government, cut spending, cut deficits, and still managed to give the middle class a tax cut was Bill Clinton.  Clinton did not balance the budget but he had us on the path towards a balanced budget with prospective 'surpluses'.

When GW Bush got into office he couldn't wait to undo all the good work Clinton had done.  Before the surpluses arrived, Bush gave a big tax cut, mostly to the rich, of course.  After 9/11 he raised spending levels on all kinds of things.  Bush's budget deficits are the biggest in history NOT COUNTING the Iraq War.

Deficit spending is just too easy for a president to do.  He can boost the economy by pumping money into it, and he can take credit for that, while the bill for the debt will come later, in some other president's term.

But Bush miscalculated.  Our debt is so big and growing so fast that our currency is losing its value.  Bush can no longer pretend that borrowing money makes us richer.  Bush has sold a lot more than a trillion dollars worth of America's future to the Chinese.

Answer 2

Thank Bush for the War for Oil Iraq occupation.  It is what is costing us all this money and we borrowed the money from China.  They own the treasury bills.

We didn't owe all this money during the Clinton administration.

Answer 3

Probably the s*x trade, chinese women are smoking and politicians are s*x fiends.

Answer 4

Bill Clinton gave China Most Favored Nation (MFN) trading status, which dropped tarrifs on imported stuff from there.  Thank him for the flood of Chinese c**p we now drown in.

Answer 5

How dare you stand in the way of the mighty Wal-Mart? Uncapitalistic jerk!

Answer 6

we owe them closer to 6 trillion,but since you cant count money for the war they dont say its that high, We are in debt nearly 10trillion dollars