2007-05-10 09:37:02 · 10 answers · asked by Anonymous in Politics & Government ➔ Politics
The Federal Reserve (the real party OF interest) owns the majority of the National Debt. This is the amount of "money," (or, Federal Reserve Notes), they have created out of thin air and declared by act of Congress to be legal tender (notice is does not say money!)
2007-05-10 09:47:58 · answer #1 · answered by jdoh10 4 · 1⤊ 0⤋
Prior to Bush administration...the big debt was the 30 year treasury note. We have to compete within the bond market with other government by offering the best rate of return as apposed to our credit or risk to an investor. The 30 year use to be a better bell weather about where real interest rates should be not the federal reserve. Private investors, Other Government, Funds and Trusts would buy these bonds from the US government...it would offer a safe risk free investment that was US Tax free. That would make up the annual federal deficit difference...the total accumulation of each year' interest and principle owed on these bonds makes up the national debt. Under the Bush Administration they got rid of the 30 for a period...I'm not sure if its back or not.
2007-05-10 17:05:13 · answer #2 · answered by Laughing Man Copycat 5 · 0⤊ 0⤋
The national debt is just the sum of various amounts that the US has borrowed over the years to pay expenses that weren't covered by taxes and other government income. At the moment it runs to a little under $9,000,000,000,000.
By a little under, I mean a 'mere' $177 billion or so!
A lot of it we lent to ourselves. Anybody who holds a US Savings Bond owns a small chunk of the national debt. The Social Security Administration, which for the past 20 years has received more in taxes than it paid out in benefits and used the balance to buy government bonds, is probably the single largest lender.
More recently, foreigners have borrowed a sizable chunk of the money. China has loaned an enormous amount, because by doing so it keeps the value of the dollar high, which makes it easier for them to export goods to us. The oil countries of the Middle East, and various national central banks, also hold large amounts of the debt.
2007-05-10 16:49:21 · answer #3 · answered by A M Frantz 7 · 1⤊ 0⤋
The Federal Reserve.
2007-05-10 16:40:37 · answer #4 · answered by Aegis of Freedom 7 · 2⤊ 0⤋
I do know that the national debt has doubled since Bush took office and I do know that we have more foreign debt under Bush than we had in the entire history of our country.
2007-05-10 16:40:35 · answer #5 · answered by truth seeker 7 · 3⤊ 1⤋
it's very simple, the US treasury issues interest bearing notes and bonds, private investors and even countries will buy up these bonds because they a low risk investment, so really the people who lend us the money are the people buying the treasury notes
2007-05-10 16:46:50 · answer #6 · answered by Nick F 6 · 0⤊ 0⤋
China loaned us the money, and they own a large portion of our debt. As the dollar falls, they will raise interest rates.
2007-05-10 16:41:52 · answer #7 · answered by hichefheidi 6 · 2⤊ 1⤋
the national debt is held by everyone who purchases federal bonds
2007-05-10 16:40:42 · answer #8 · answered by kapute2 5 · 2⤊ 0⤋
other countries..
big business like banks and investment groups..
2007-05-10 16:40:31 · answer #9 · answered by steph 6 · 2⤊ 1⤋
CHINA
2007-05-10 16:58:23 · answer #10 · answered by Anonymous · 0⤊ 0⤋