George Allen(R), says China owns more U.S. bonds than Americans

THIS IS FALSE.

Allen said China owns more U.S. bonds than Americans. That statement is wrong on its face, but the Allen campaign offers a qualifier -- his spokesman said Allen’s statement is a reference to regular American investors.

But the reports Allen cites are not comparable and don’t even prove that narrower assertion.

Official debt tallies, even using Allen’s definition of ordinary American investors, show U.S. citizens held more government debt than China.

As an added defense, Allen’s campaign said Federal Reserve Chairman Ben Bernanke in February testified before Congress that he thinks China owns more than $2 trillion of U.S. government bonds. That still doesn’t prove Allen’s point.
FULL ARTICLE: http://www.politifact.com/virginia/statements/2011/jul/08/george-allen/allen-says-china-owns-more-us-bonds-americans/

The bottom line is that Allen’s methodology of including some U.S. investors and ignoring others is highly questionable, and his evidence doesn’t add up to his conclusion.