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Biggest Holders of US Government Debt


Bumper64
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As the U.S. government spends an unprecedented amount of money to fix the economy, there is an equally great need to raise the cash to pay for it. This is accomplished through borrowing, whereby Uncle Sam sells Treasury securities of varying maturity.

For investors, government bills, notes and bonds are considered safe because they have a guaranteed rate of return, based on faith in future U.S. tax revenues. The government has been partially funding operations via Treasury securities for decades.

This borrowing adds to the national debt, which has recently surpassed $15 trillion and is rising every second. The amount of debt is quickly approaching the federal debt ceiling, a legal limit to borrowing that currently stands at $16.4 trillion.

Much of that debt is held by private sector, but about 40 percent is held by public entities, including parts of the government. Here's who owns the most. Foreign countries listed include private and public investors, according to monthly U.S. Treasury data.

1. Federal Reserve and Intragovernmental Holdings

That’s right, the biggest single holder of U.S. government debt is the Federal Reserve system. The Fed's system of banks and other U.S. intragovernmental holdings accounted for a stunning $6.328 trillion in U.S. Treasury debt in Spetember 2011 (the most recent number available). The amount is an all-time high as the Federal Reserve continues to expand its balance sheet, partially to purchase U.S. government debt securities.About a decade ago, the total government holdings were "only" $2.5 trillion.

2. China slide2-SS-US-debt-holders2-china-jpg_195516.jpg

U.S. debt holdings: $1.132 trillion

The largest foreign holder of U.S. Treasury securities, China currently has $1.132 trillion in American debt, although it is down from all time highs of $1.173 trillion in July 2011. For more on China and currency, see CNBC Explains.

3. Other Investors/Savings Bonds

With the most recent numbers from June 2011, this extremely diverse group includes individuals, government-sponsored enterprises, brokers and dealers, bank personal trusts, estates, savings bonds, corporate and noncorporate businesses for a total of $1.107 trillion.Although the level of debt held in U.S. savings bonds has remained basically constant since 2000, the broad category of "other" investors has nearly quadrupled since reaching a four-year low in December 2007.

4. Japan slide4-SS-US-debt-holders2-japan-jpg_195516.jpg

U.S. debt holdings: $1.038 trillion

One of the U.S.'s largest trade partners, Japan is also one of the U.S.'s largest debt holders, currently owning $1.038 trillion in Treasury securities.

5. Pension Funds

Pension funds control large amounts of money, reserved for personal retirements, and thus are obligated to make relatively safe investments. This group, which includes private and local government pension funds, holds $842.2 billion in U.S. debt. The private pension fund category also includes U.S. Treasury securities held by the Federal Employees Retirement System Thrift Savings Plan G Fund.

6. Mutual Fundsslide6-SS-US-debt-holders2-mutual-jpg_195516.jpg

U.S. debt holdings: $653.5 billion

According to the Federal Reserve, mutual funds hold the sixth-largest amount of U.S. debt compared to any other group, although mutual fund holdings have diminished by more than $105 billion since December 2008. Including money market funds, mutual funds and closed-end funds, this group of investments managed about $653.5 billion in U.S. Treasury securities as of June 2011, which are the most recent numbers available.

7. State and Local Governments

U.S. debt holdings: $484.4 billion

U.S. state and local governments have nearly a half-trillion dollars invested in American debt, according to the Federal Reserve. The level of investment has remained stable since 2006, moving within the range of $484 billion and $576 billion. The current debt holdings, however, represent the lowest aggregate level for state and local governments since December 2005, when they stood at $481.4 billion.

8. The United Kingdomslide8-SS-US-debt-holders2-uk-jpg_195516.jpg

U.S. debt holdings: $429.4 billion

The U.K. currently holds $429.4 billion in U.S. debt, but the country's investment has fluctuated dramatically during the past two years. Now at its all-time high (and rapidly increasing), British holdings were as low as $55 billion in June 2008.

9. Depository Institutions

As of June 2011 (the most recent numbers available), the Federal Reserve Board of Governors lists depository institutions as holding about $284.5 billion in U.S. debt. This group includes commercial banks, savings banks and credit unions. In 2011, its holdings more than tripled from the 2008 low of $105 billion. Between June and September 2011, holdings for depository institutions fell by nearly $44 billion.

10. Insurance Companiesslide10-SS-US-debt-holders2-ins-jpg_195516.jpg

U.S. debt holdings: $250.1 billion According to the Federal Reserve Board of Governors, insurance companies hold $250.1 billion in Treasury securities. This group includes property-casualty and life insurance firms.

http://finance.yahoo...gov-t-debt.html

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A real eye opener... thanks for posting Bump!

Here's another truth about the US national debt: The US national debt has never gone done since 1913. Research it yourself if you don't beleive me.

I haven't posted this in awhile but what the heck, I'll post it again because it is also an eye opener.

Concerned about the US national debt, in 1982, President Ronald Reagan appointed a commission, headed by J. Peter Grace, and gave it this charge in regard to the national debt: "be bold" and "work like tireless bloodhounds. Don't leave any stone unturned in your search to root out inefficiency."

Two years later, in 1984, the "Grace Commission" stood before Congress and gave its' findings (the full report is in a link at the bottom of the page). The findings will shock you....

Here is an excerpt:

Resistance to additional income taxes would be even more widespread if people were aware that:

  • One-third of all their taxes is consumed by waste and inefficiency in the Federal Government as we identified in our survey.
  • Another one-third of all their taxes escapes collection from others as the underground economy blossoms in direct proportion to tax increases and places even more pressure on law abiding taxpayers, promoting still more underground economy-a vicious cycle that must be broken.
  • With two-thirds of everyone's personal income taxes wasted or not collected, 100 percent of what is collected is absorbed solely by interest on the Federal debt and by Federal Government contributions to transfer payments. In other words, all individual income tax revenues are gone before one nickel is spent on the services which taxpayers expect from their Government.

Link: <A href="http://www.uhuh.com/taxstuff/gracecom.htm">http://www.uhuh.com/taxstuff/gracecom.htm

Let that last line sink in.........

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A real eye opener... thanks for posting Bump!

Here's another truth about the US national debt: The US national debt has never gone done since 1913. Research it yourself if you don't beleive me.

I haven't posted this in awhile but what the heck, I'll post it again because it is also an eye opener.

Concerned about the US national debt, in 1982, President Ronald Reagan appointed a commission, headed by J. Peter Grace, and gave it this charge in regard to the national debt: "be bold" and "work like tireless bloodhounds. Don't leave any stone unturned in your search to root out inefficiency."

Two years later, in 1984, the "Grace Commission" stood before Congress and gave its' findings (the full report is in a link at the bottom of the page). The findings will shock you....

Here is an excerpt:

Resistance to additional income taxes would be even more widespread if people were aware that:

  • One-third of all their taxes is consumed by waste and inefficiency in the Federal Government as we identified in our survey.
  • Another one-third of all their taxes escapes collection from others as the underground economy blossoms in direct proportion to tax increases and places even more pressure on law abiding taxpayers, promoting still more underground economy-a vicious cycle that must be broken.
  • With two-thirds of everyone's personal income taxes wasted or not collected, 100 percent of what is collected is absorbed solely by interest on the Federal debt and by Federal Government contributions to transfer payments. In other words, all individual income tax revenues are gone before one nickel is spent on the services which taxpayers expect from their Government.

Link: <A href="http://www.uhuh.com/taxstuff/gracecom.htm">http://www.uhuh.com/taxstuff/gracecom.htm

Let that last line sink in.........

To put it in another way... It is like the U.S. has a credit card that is maxed out & they're failing to even meet their minimum amount due & the interest on the balance is increasing the principle in size.

The Feds seem to pick up the check when other foreign entities do not hold purchase our debt. China is purchasing less of our debt now days, so the federal reserve steps in.

This is rediculouse, I don't know why our government (both parties) thinks it's ok to spend more than you make. :angry:

Kicking the can down the road.... Basically what they're doing.. Procastinating something that will one day be inevitable.

Quite scary when you think about it..

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To put it in another way... It is like the U.S. has a credit card that is maxed out & they're failing to even meet their minimum amount due & the interest on the balance is increasing the principle in size.

Sort of, and thanks for your thoughts Darin. +1 for the exchange.

According to the Grace Commission report all revenue collected from income taxes ONLY pays the interest on our national debt. None of it goes toward the principle. Now that's crazy wacko.gif .

Not only are we not making our minimum payments on the principle, we are barely able to make the payments on the interest! Yikes!

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If that ( $ 15,000,000,000,000 PLUS DEBT... ) does not sound threatening enough for our Country and it's Future, consider Medicare, Medicade and Social Security Systems???

All three of these Government based programs for all basic reasons and understanding are already broke and way past the Bankruptcy stages!!!

I certainly have my reservations but nevertheless hope that the upcoming election (LOL) along with our Global Financial Adjustment from the 100 plus Country RV / DVD helps us out a little???

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:blink:Well, if you don't have a budget that you must attend or abide

by.....then I guess it just doesn't matter how much you spend. :(We haven't had a budget in over 3 yrs....And obama could have had

it his way for the first 2yrs as he and his cronies were in complete

control......what a sad, sad situation we are in and even sadder for our

children and grandchildren...:hug: .God help us and have mercy on the future.:confused:

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