Holders of U.S. Government Debt
Here is a nice chart I made on who holds the United State’s government debt.
The information comes from the U.S. Treasury Department.
The U.S. Federal Reserve and intra-governmental debt (mainly Medicare, Social Security, and the Federal Financing Bank) are by far the largest holders of U.S. debt, holding 40% of the total U.S. debt. Of course if future obligations to Social Security and Medicare are the main reason why we have debt, if we really wanted we could just wish away these obligations and then debt wouldn’t be a problem. Thus all the talk of dismantling and destroying these programs is a non-solution: the social insurance programs are the debt, if we are okay with simply destroying these programs then we don’t have a debt problem. The truth of the matter is that the problem with these programs is politicians who take the Social-Security and Medicaid tax revenues and spend them, replacing this income with I.O.U.’s . Thus removing these programs would basically constitute theft to anyone who paid into them expecting that the programs function as some sort of social contract.
Also note, China accounts for only 6% of total U.S. debt and only 21% of total foreign holdings of U.S debt.
Maybe we should worry about the American people taking back power from the corrupt politicians who don’t want to honor the I.O.U.’s they gave to Medicaid and Social Security; before we worry about the Chinese demanding their money back from those same corrupt U.S. officials happy to subvert financial laws to benefit foreign governments.
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This post may be updated in the future.