I'm sure INGO knows...

[Que]

I've tried to research this topic a few times, but fell into a hole of conspiracy and spooky fraternity talk. So, can anybody tell me or point to a credible source that tells me who America is indebted to? This appears to be an easy question to answer when asked about Greece, because they borrowed from other countries. I know we have a huge deficits and continue to borrow money, but from where or whom is this money being borrowed?

 

[snapping turtle]

China japan and Belgium add in a the fact that most debt is I believe self held.

This is off off the top of head Belgium was the weird one. I believe this info was from a wired magizine.

 

[Expat]

Last I heard, the FED has been buying up most of the new debt (Quantitative Easing).

 

[d.kaufman]

https://en.m.wikipedia.org/wiki/National_debt_of_the_United_States

 

[ViperJock]

Mostly ourselves from what I understand.

 

[jbombelli]

Mostly ourselves from what I understand.

This. Every bank in the country buys government debt. A lot of it. Pension plans, 401(k)s, IRAs, all have funds in them with a portion invested in debt, individuals invest in it too. You'd be amazed at how much money our government actually owes us.

 

[BehindBlueI's]

Yup. Most of what we owe is what we've "borrowed" from ourselves, including money the gov't owes the gov't, such as taking money from the social security trust fund and replacing it with IOUs.

If you own savings bonds, treasury bills, etc., you personally hold government debt. That's the mechanism that foreign governments use to buy US debt. Roughly 1/3 of the US debt is owed to foreign nations, who owns how much debt can been here:

http://ticdata.treasury.gov/Publish/mfh.txt

 

[indiucky]

After years of researching this I am pretty sure it's a guy named Eddie.....

 

[KMaC]

Ireland and Brazil are 3rd & 4th largest debt holders? I could swear they both had their own financial problems. Why are they buying into questionable US debt?

 

[HoughMade]

Ireland and Brazil are 3rd & 4th largest debt holders? I could swear they both had their own financial problems. Why are they buying into questionable US debt?

Because U.S. debt is not questionable.

 

[BehindBlueI's]

Ireland and Brazil are 3rd & 4th largest debt holders? I could swear they both had their own financial problems. Why are they buying into questionable US debt?

Because US debt isn't questionable, gives them assets that don't fluctuate with their own economy and currency, and is safer than their internal banking system. Having an asset that other people want (and US debt is such an asset, again because it isn't questionable) helps prop up their own currency and ability to borrow. Just like if you have no assets and shaky income, anyone who will lend money to you will charge a higher interest rate, countries are the same. Having some safe assets that are liquid and desirable help bolster your economic position.

 

[ATM]

...I know we have a huge deficits and continue to borrow money, but from where or whom is this money being borrowed?

It's all borrowed (robbed) from our posterity. Future us.

 

[KMaC]

Because U.S. debt is not questionable.

Why do you say the debt isn't questionable? If the current debt is $18T and population is 300M (including non-earners/children) that's a debt/person of $60,000. Congress has never had any legitimate plan to reduce debt and I don't foresee any Congress in my lifetime finding the political will and cooperation to address it.

 

[BehindBlueI's]

Why do you say the debt isn't questionable? If the current debt is $18T and population is 300M (including non-earners/children) that's a debt/person of $60,000. Congress has never had any legitimate plan to reduce debt and I don't foresee any Congress in my lifetime finding the political will and cooperation to address it.

Government debt is more complicated than consumer debt. US debt is viewed as an asset in the marketplace. Its more like stock than like your credit card bill when it comes time to call it due.

First, remember about 40% of the debt is owed between government entities. It's like you borrowed $500 from your new car fund to buy a gun. You "owe" your car fund $500...or you can just not buy a new car later down the road and forget the debt. That's sort of what we're seeing with SSI. A lot of money has been borrowed from the fund for other things, now there's hard choices to make. We can elect to not refill that account, but we'll see cuts to SSI.

Non-government held debt trades like stock. When China sold off some $180 billion of US debt a few years back, they didn't come to the US, turn in the debt, and walk away with a check. Other countries, banks, etc. bought it.

If US debt is no good, the entire world market has collapsed and debt isn't relevant any longer anyway.

 

[jbombelli]

Why do you say the debt isn't questionable? If the current debt is $18T and population is 300M (including non-earners/children) that's a debt/person of $60,000. Congress has never had any legitimate plan to reduce debt and I don't foresee any Congress in my lifetime finding the political will and cooperation to address it.

It's backed by the full faith, credit, and taxing authority of the United States Government.

 

[Trigger Time]

The American people

 

[indiucky]

It's all borrowed (robbed) from our posterity. Future us.

I hate to be a grammar Nazi but the correct word is "bar-eed" not "borrowed"....

Least wayz thuts how we'all sayz it...

 

[gregr]

This. Every bank in the country buys government debt. A lot of it. Pension plans, 401(k)s, IRAs, all have funds in them with a portion invested in debt, individuals invest in it too. You'd be amazed at how much money our government actually owes us.

But, we are the government...

 

[gregr]

It's all borrowed (robbed) from our posterity. Future us.

Yup. Like that pesky little detail no one ever discusses, about when our elected employees stole better than two trillion dollars from the Social Security surplus. Then want to tell us, oh well, looks like it might not work out for you...

 

[jamil]

But, we are the government...

No, "we" the civilians are not the government.