Holders of US Debt

Total Public Debt Outstanding on December 31, 2023 was $34.0 Trillion – on July 31, 2024 it was $35.0 Trillion.

There is a lag in the government reporting of some data. Therefore, the December 31, 2023 data was used in the following table.

Total Public Debt Outstanding is divided into two sub categories: 1) Intragovernmental Debt, and 2) Debt Held by the Public. It should be noted the government, media and may 501’s use Debt Held by the Public, an amount lower than Total Public Debt Outstanding, when quoting certain economic ratios. This results in making the debt amount and ratios appear lower and thus better than reality.

Intragovernmental Debt – $7.1 Trillion or 21% of Total Public Debt Outstanding at December 31. This debt is incurred when the government General Account borrows from Trusts and other earmarked Funds to pay for current, day-to-day, government operations. The Trust Funds include Social Security, Medicare, Federal Employees and Military pensions and benefits, and other funds.

Using Social Security and Medicare as examples, after this money is deducted from taxpayers’ paychecks it is deposited into “Trust Funds.” The General Account then borrows the excess cash in exchange for a government debt security. The Trust Funds now hold US Government Debt. The Trust Fund cash is transferred to the General Account and is used to pay current, day-today, government expenses. There is no securitization of assets or earmarked revenues to pay it back. It is only backed by the “full faith and credit of the United States” – also known as US, the taxpayers.

Debt Held by the Public – $26.9 Trillion or 79% of Total Public Debt Outstanding at December 31. This debt is incurred when the government General Account borrows from a variety of Domestic and Foreign sources, including the Federal Reserve, to pay for current, day-to-day, government operations.

US– this category includes money borrowed from both US based accounts, individuals and corporations and others representing retirement and non-retirement funds. It also includes money received from the Federal Reserve (the US central bank) when it authorizes the printing of money to magically expands the money supply. This new cash is given to the government for operations in exchange for Debt securities.

Foreign– this category includes money borrowed from individuals, corporations, and governments of many countries. Foreigners are attracted to US Debt due to the US’s high credit rating, relatively stable currency and history of repaying its Debt. Despite scares that China holds large amounts of US debt they will sell, due to cross holdings and China’s interest in keeping US currency high for balance of trade reasons, it is unlikely they will sell all of their holdings, especially irresponsibly.

Holders of US Debt
Approximate (in $Billions)
December 31, 2023