and that is correct! In fact, China only recently moved ahead of Japan, which has held a lot of long term notes over many years. The mutual funds was surprising to me, but what is astounding is by far, how much more is held by the Federal Reserve Banks. Well over five times as much, and climbing.
We pay almost 500 billion on just interest so they can issue money. Between that and FNMA, that equals pretty much the dollars from the income tax. Think about this. If we nationalized the Fed, and didn't have to pay interest to either, we wouldn't need the income tax. Of course, that's in an ideal world.