The whole "borrow money from China" thing is a perfect example of our scare media at work. Japan has lent us by far the most money with China coming into a distance 2nd. Just thought I'd throw that in there.
O rly? Would you consider the United States Department of Treasury and Census Bureau to both be part of the "scare media," as you put it? As far as foreign holdings of US Treasury securities, China and Japan are about dead even (when you include Hong Kong, which is listed separately). The thing is, Japan is a bit more…