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Don't Fear China and Japan Owning More U.S. Debt

The U.S. Treasury Department said today (Thursday) that total foreign holdings of U.S. debt rose 1.1% in November to $5.72 trillion, putting foreign holdings 0.1% below the all-time high of $5.76 trillion it reached in March 2013.

In particular, China's holdings reached record levels, increasing 0.9% to $1.32 trillion, and so did Japan, which boosted its holdings by 1% to $1.19 trillion. The two countries are the largest and second-largest foreign buyers of Treasury debt, respectively.

While the leverage this gives these companies bothers many Americans, it actually isn't a bad thing…

Money Morning Chief Investment Strategist Keith Fitz-Gerald appeared on FOX Business' "Varney & Co." this morning (Thursday) and discussed why it's vitally important to the U.S. economy that China and Japan keep buying:

 

Investors can make this one tiny adjustment today to see vastly heightened returns in 2014…

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