Who do we owe?
When the Federal Government borrows money to compensate for budget deficits it issues securities. Securities are financial instruments that establish a debt for repayment at a specific time and amount. Treasury bills and savings bonds are typical examples of securities.
The Government sells bonds to the public and in return the public loans cash to the government to meet the needs of the deficit. Even though International Investors hold a significant amount of the National Debt, the majority of the debt is held by entities within the United States. See the following breakdown.
· 47% International Investors
· 36% Domestic Private Investors
· 9% Federal Reserve
· 8% State and Local Government
The Government sells bonds to the public and in return the public loans cash to the government to meet the needs of the deficit. Even though International Investors hold a significant amount of the National Debt, the majority of the debt is held by entities within the United States. See the following breakdown.
· 47% International Investors
· 36% Domestic Private Investors
· 9% Federal Reserve
· 8% State and Local Government