Correction: Who Owns the National Debt?

On my last post, I made an error in reporting who owns the federal debt, and I apologize for any confusion it may have caused. I originally reported 86 percent is owned by and owed to Americans. Here are the correct facts:


The total public debt as of 8/1/2011 is $14.3 trillion or $46,708 per U.S. citizen. It is higher than the total value of China's, the United Kingdom's and Australia's economies together. Our national debt is growing by $3.5 billion per day or $2 million per minute.

Only 32 percent or about $4.6 trillion is owned by the federal government (intragovernmental holdings) as IOUs for Social Security, federal pensions, etc. About $3 trillion is owed to Social Security and the Federal Reserve Bank holds about $2 trillion.

About $5.3 trillion or 37 percent are private holdings by American investors, corporations (especially banks and pension funds), and holdings by state and local governments.

The remaining $4.4 trillion or 30 percent is owned by foreigners. China owns 8 percent of our debt or about $1.2 billion. This makes the Chinese the third largest holder of U.S. debt. Only the Social Security Trust Fund and the Federal Reserve Bank hold more.

Therefore, about $9.9 trillion or 69 percent, not 86 percent, of the national debt is owned by and owed to Americans.

Sources used include: http://usgovinfo.about.com/od/moneymatters/ss/How-Much-US-Debt-Does-China-Own.htm  http://www.usdebtclock.org/

http://www.treasurydirect.gov/NP/BPDLogin?application=np
http://www.fms.treas.gov/bulletin/index.html
http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/mfh.txt
http://www.defeatthedebt.com/