History of North America

What type of debt does the US have and who is it owed to?

Types of US debt:

1. Public debt:

- Treasury bills: Short-term debt instruments with maturities of less than one year.

- Treasury notes: Medium-term debt instruments with maturities between 1 and 10 years.

- Treasury bonds: Long-term debt instruments with maturities greater than 10 years.

- Treasury inflation-protected securities (TIPS): Debt instruments that protect investors from inflation by adjusting the principal value based on the consumer price index.

2. Intragovernmental debt:

- Debt owed by the US government to itself, such as the Social Security Trust Fund and the Medicare Trust Fund.

3. Debt held by the Federal Reserve:

- Debt owed by the US government to the Federal Reserve, primarily through the purchase of Treasury securities in open market operations.

4. Debt held by foreign entities:

- Foreign governments and central banks, as well as international financial institutions like the World Bank and the International Monetary Fund.

- Private investors, such as individuals, banks, and pension funds, outside the United States.

Who owes the US debt:

1. Domestic investors:

- Individuals, banks, mutual funds, and other institutions within the United States.

2. Foreign investors:

- Foreign governments, central banks, and international financial institutions.

- Private investors, including individuals, banks, and pension funds, outside the United States.

3. Federal Reserve:

- As the central bank of the United States, the Federal Reserve holds a significant amount of US debt as part of its monetary policy operations.

4. US Treasury:

- The US Treasury manages the national debt and regularly issues new debt instruments to finance the government's activities and obligations.