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Biggest US Foreign Creditors Show Concern on Default Risk
Japan and China, the two biggest foreign creditors of the U.S., expressed concern over the risk of a U.S. default as President Barack Obama and Republicans remain locked in a fiscal stand-off. Japan must consider the impact of a default on its Treasury holdings, even as the U.S. will probably avoid a fiscal crisis, Japanese Finance Minister Taro Aso said today at a press briefing in Tokyo. Deputy Finance Minister Zhu Guangyao said yesterday that the U.S. should prevent a default, the People’s Daily reported. China owns $1.28 trillion in Treasuries and Japan has $1.14 trillion, according to the U.S. Treasury ... (full story)