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Who Owns the U.S. National Debt?

Discussion in 'Topical Discussions (In Depth)' started by Goldhedge, May 15, 2017.



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  1. Goldhedge

    Goldhedge Modal Operator/Moderator Site Mgr Site Supporter

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    Who Owns the U.S. National Debt?
    Monday May 15th, 2017 • Posted by Craig Eyermann

    As of May 11, 2017, the total public debt outstanding of the U.S. government exceeds $19.8 trillion.

    Political Calculations provides a summary of the major interests to whom the U.S. owes all that money, as of the end of the U.S. government’s 2016 fiscal year on September 30, 2016, when the national debt total stood at just shy of $19.6 trillion:

    One of the crazier things about the U.S. national debt is that it often takes a lot of months after the end of a given fiscal year for the U.S. Treasury to sort out who the U.S. federal government owes money, particularly when when that money is owed to foreign entities.

    So here we are, just over halfway through the federal government’s 2017 fiscal year, before we have a good idea of how much U.S. government-issued debt was held by its major foreign creditors at the end of the U.S. government’s 2016 fiscal year, which ended on 30 September 2016! The following chart reveals who the biggest holders of the U.S. national debt were as of that time:

    [​IMG]
    FY 2016: To Whom Does the U.S. Government Owe Money?

    Officially, the U.S. government’s total public debt outstanding is divided up into two parts: the “Public” portion of the national debt....

    [​IMG]

    And the so-called “Intragovernmental” portion of the national debt, where the latter category represents money owed to various trust funds established and operated by the U.S. government.

    [​IMG]

    Right now, we can see that Social Security’s Old Age and Survivors’ Insurance Trust Fund accounts for a little over half of the Intragovernmental portion of the U.S. national debt, which works out to be nearly $2.8 trillion, or about one-seventh of the U.S. government’s total public debt outstanding.

    If Social Security’s Trustee’s are right, that number will steadily shrink to zero over the next 17 years, as that debt is cashed in to pay retirement benefits to Social Security recipients. When that number does reach zero, Social Security’s Trustees have indicated that the program will be forced to revert to the program’s original Pay-As-You-Go basis, where benefits can only be paid out of the payroll taxes that fund Social Security. When that happens, they predict that all Social Security benefits will need to be cut by 21%, unless Social Security’s payroll taxes are increased from 12.4% of earned income (which is currently equally split between employers and employees) up to 15.78% of earned income.

    If you would like to see more detail on who the U.S. government owes money to, and also what countries owe the U.S. government money, Jeff Desjardins of Visual Capitalist has an interesting infographic that explores that data.

    http://www.mygovcost.org/2017/05/15/who-owns-the-u-s-national-debt-2/
     
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  2. gringott

    gringott Killed then Resurrected Midas Member Site Supporter

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    How did the Federal Reserve [Not Federal, No Reserves] buy debt and what did they buy it with?
    "Federal Reserve Notes"? lol

    So in 17 years Social Security can no longer fund the Federal Government operations. Who TF is going to take their place?

    Talk about a circle jerk.
     
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  3. TAEZZAR

    TAEZZAR LADY JUSTICE ISNT BLIND, SHES JUST AFRAID TO WATCH Midas Member Site Supporter

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    Coming soon, to a bank near you !!


    [​IMG]
     
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  4. Joe King

    Joe King Gold Member Gold Chaser

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    It'll be before then. The only reason it can be used to fund it now is due to the gov collecting more SS funds than is needed. When they get to the point that the Trust Fund must be liquidated, that means no more excess funds as of that moment. Plus, they'll need to raise other taxes in order to be able to pay back the funds borrowed from the SS Trust.

    The 17 year thing is when the Trust Fund is slated to be depleted. Ie: all the borrowed funds will have been re-paid by then. That means that taxes collected via other means must increase by that amount during those 17 years in order to be able to repay it without wiping out the rest of the budget.
    Simply put, the fed.gov needs to come up with all the excess SS monies that was collected and spent since '83 and do it within the next 17 years.


    Edited to add: based on the chart in the OP, that means at least $2.8trillion in new taxes on top of everything else they'll collect.
    ...and they'll need to raise taxes even further to cover the amount they've been borrowing annually from SS. The only other alternatives would be to cut the budget by that amount or issue even more debt for the World to choke on.


    You and everyone else they can get their hands on, because the fed.gov will soon be getting the equivalent of a margin call from hell.
     
    Last edited: May 16, 2017
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  5. gringott

    gringott Killed then Resurrected Midas Member Site Supporter

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    Henry Ford was right.
     
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  6. Joe King

    Joe King Gold Member Gold Chaser

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    To further clarify, to pay back the SS Trust Fund the $2.8T it is owed within the projected 17 years would require (at current population levels*) approx an extra $750 per person per year for 17 years. That means an extra $3000 in annual taxes for a family of four on top of all other taxes already being paid.

    SS lent the gov $2.8T over the past 35 years. That comes out to an average of about $82.4B/year, or $253/person/year that the gov has been spending that, absent budget cuts, will need to be made up.
    ...and let's be honest here. Does anyone think they'll willingly cut the budget by that much? I don't.

    SS is owed that $2.8T over 17 years which means the gov needs to raise taxes by approx $500/person/year.

    That where I get the grand total of $750/person/year, or $3000 per family of four. That's based on 325,000,000 population.

    * this is also a good reason (in the govs view, at least) to keep upping immigration numbers, because it helps to dilute the problem.


    Edited to add: keep in mind that the $82.4B is an average over the past 34 years. They borrowed less early on and more in recent years. So the $253/person/year number is on the low side. Probably more like $350/person/year.
    Get ready to hang on to your wallets! If you can.
     
  7. GOLDBRIX

    GOLDBRIX God,Donald Trump,most in GIM2 I Trust. OTHERS-meh Site Supporter Platinum Bling

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    Now you know why ObamaCare had / Has a Death Council Board.

    So far I think it is still in RinoCare too.
     
    Last edited: May 16, 2017
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  8. Po'boy

    Po'boy Midas Member Midas Member Site Supporter

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    I don't care who owns it, just that all US citizens are liable to pay it back.

    Being as there's not enough to do so paints an interesting picture.

    I'm guessing politicians will keep promising pie in the sky till their constituents are homeless and flat broke while the bankers confiscate all the belongings.
     
  9. Po'boy

    Po'boy Midas Member Midas Member Site Supporter

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    The fact a plain Ole repeal isn't on the table speaks volumes of the current reality star in chief.
     

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