The holders of the debt are:
1. The privately owned U.S. Federal Reserve is the largest holder at 6.3 trillion. It goes on its balance sheet as an asset. . This means that the nation has a debt that is used to fund ambitious programs and it creates and asset in the Fed at the same time. I wonder what a CPA would think of that.
2. China is the second largest with $1.1 trillion. This seems to indicate that they have the ability to influence significantly the value of the dollar and thus the ability for the U.S. to compete.
3. The third holders of the U.S. debt, at $1.1 trillion are investors and Savings Bonds. The investors are made up of estates, corporations, trusts and businesses. They will look to be repaid with some profit.
4. Japan holds $1.0 trillion and is one of our largest trade partners.
5. Pension funds have $0.8 trillion, which is looked at as secure and needed for the retirement of workers.
6. Mutual funds hold $0.7 trillion. These are primarily held by investors and others. It has been declining since December 2008.
7. State and local governments hold $0.5 trillion, which has held relatively constant in since 2006.
8. Another country that holds U.S debt is the United Kingdom at $0.4 trillion. This has been increasing dramatically in the last few years.
9. Banks and credit unions hold $0.3 trillion, but the amount has been falling in the last year.
10. Insurance companies hold $0.3 trillion.
The top 10 entities are mostly organizations within the governments or other U.S. based entities or companies. Only $2.5 trillion is held by other countries. It is surprising how many entities like the Federal Reserve have been financing the enormous growth of the debt. It makes one feel that we are madly spending and have eager buyers of the debt. The Congress or legislative branch authorizes debt increases. The bureaucracy spends and spends. No checks and balances exist and it controls the entities that buy the debt. Taxpayers will be left holding the bag
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