“…much of it from China.” (What U.S. borrows every day)

Claim: “…much of it from China.”

Ad(s): At Stake

Sponsor(s): American Crossroads

Air Dates:  October 24-November 6

Total Estimated Spending On This Claim: $1,723,185 ($3,446,370 total)

States: Florida, New Hampshire, Ohio and Virginia, West Virginia, Nevada, Iowa, Colorado, Arizona

Markets: Tuscon, Colorado Springs, Denver, Orlando, Tampa, Cedar Rapids, Davenport, Des Moines, Ottumwa, Quincy, Rochester, Boston, Burlington, Portland, Las Vegas, Cincinnati, Cleveland, Columbus, Dayton, Lima, Parkersburg, Toledo, Wheeling-Steubenville, Youngstown, Zanesville,   Charlottesville, Norfolk, Richmond, Roanoke, Tri-Cities, Washington D.C., Charleston, Erie, West Palm Beach

Stations: KWBA, KKTV, KOAA, KRDO, KXRM, KCNC, KDVR, KMGH, KTVD, KWGN, WESH, WFTV, WKCF, WKMG, WOFL, WRDQ, WFLA, WFTS, WMOR, WTOG, WTSP, WTTA, WTVT, WWSB, KCRG, KFXA, KGAN, KWWL , KLJB, KWQC, WHBF, WQAD, KCCI, KDSM, WHO, WOI, KTVO, KYOU, CGEM, KHQA, WEM, KAAL, KTTC, KXLT, WBZ, WCVB, WFXT, WHDH, WLVI, WSBK, WCAX, WFFF, WPTZ, WVNY, WCSH, WGME, WMTW, WPFO, KLAS, KSNV, KTNV, KTUD, KVCW, KVMY, KVVU, WCPO, WKRC, WLWT, WXIX, WBNX, WEWS, WJW, WKYC, WOIO, WUAB, WBNS, WCMH, WSYX, WTTE, WDTN, WHIO, WKEF, WRGT, ELIO, EOHL, WLIO, WOHL, WTAP, WNWO, WTOL, WTVG, WUPW, WTOV, WTRF, WFMJ, WKBN, WYTV, WHIZ, WAHU, WCAV, WVAW, WVIR, WAVY, WGNT, WTKR, WTVZ, WVBT, WVEC, WRIC, WRLH, WTVR, WWBT, WDBJ,WFXR, WSET, WSLS, WCYB, WJHL, WKPT, WDCA, WDCW, WJLA, WRC, WTTG, WUSA, WCHS, WOWK, WVAH

 

Politifact Summary: Then there’s the part about China. This is where the ad’s claim gets goofy. If we assume Eastwood’s talking about what’s been added to the entire federal debt since Obama took office – the amount that averages $4 billion a day – here’s how much as of August China owns: 7.7 percent. If someone told you that there were two pieces to our recent debt, one piece under 8 percent and one piece above 92 percent, then asked you which of those pieces represented “much of it,” what would you say? We’re guessing the non-Chinese piece. Still, China is the No. 1 foreign holder of U.S. Treasury securities. (About a third of our total debt is held by foreigners.) So the main concern about U.S. public debt held by foreigners is mainly what might happen if they all stopped buying. It could drive up U.S. interest rates, said Wayne Morrison, a specialist in Asian trade and finance for the nonpartisan Congressional Research Service. Does that give China some sort of leverage? Or what if they sold off their U.S. securities all at once, sparking some kind of financial crisis? “Many economists argue that such a move is highly unlikely,” Morrison told PolitiFact. If China tried a big selloff, it would drive up supply of U.S. Treasuries and drive down their value – tanking the value of China’s own holdings…And while China is the No. 1 foreign holder of U.S. securities, it purchased less than 10 percent of that debt.

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