ROMNEY: “What would I cut from spending? Well, first of all, I will eliminate all programs by this test, if they pass it: Is the program so critical it’s worth borrowing money from China to pay for it?”
THE FACTS: China continues to be portrayed by Romney and many other Republicans as the poster child for runaway federal deficits. It’s true that China is the largest foreign holder of U.S. debt, but it only represents about an 8 percent stake. And China has recently been decreasing its holdings, according to the Treasury Department. Some two-thirds of the $16 trillion national debt is owed to the federal government, with the largest single stake the Federal Reserve, as well as American investors and the Social Security Trust Fund.