[citation][nom]kartu[/nom]Well said. What a shame your comment were modded down and followed with nonsense comments like that of Mr nottheking.[/citation]
"Nonesense?" I can only be correct to interpret that term to mean you don't like hearing the truth, and would rather hear the blabber of idiots who know not a thing about political economics? Perhaps you ought to bother to read up and learn something before opening your mouth and looking foolish, rather than just listening to whatever talking head you see/hear on the news.
As it happens, you can regularly get figures on the US government debt, right from the government:
http://www.treas.gov/tic/mfh.txt
I might be over-estimated on the trend, but last time the US Treasury released a statement on "who owns US government debt," in July China's amount of US debt was $846.7US billion, down $93.2US billion (10%) from a year before. In the same period, Japan's quantity has gone UP by $100.1US billion, an increase of about 14%. Though there's some fluctuations, that means China's dropping an average of $7.7 billion a month, while Japan's buying another $8.3 billion; a gap closure of >$16US billion a month. So in the two months since that last update, Japan should've more than closed the $25.7US billion gap behind china, to now own more government debt.
And as I said, at no point did China hold a whole trillion dollars of debt, nor did they hold a majority of the foreign debt. (which, by the way, only recently passed four trillion; the rest is owed to the government itself as well as US citizens) At their peak last year, it was still only 26.8% of the total foreign-held debt; a measly 6.4% once you figure in all parts of the >$13US trillion debt.
As I said, hardly ownership. So next time, please become educated before you make such alarmist statements.