...Intragovernmental Holdings - Nearly 30% of the Federal debt is owed to about 230 other Federal agencies. Why would the government owe money to itself? Some agencies, like the Social Security Trust Fund, take in more revenue from taxes than they need right now. Rather than stick this cash under a giant mattress, they buy U.S. Treasuries with it. This effectively transfers their excess cash to the general fund, where it can be spent. Of course, one day they will redeem their Treasury notes for cash. The Federal government will either need to raise taxes, or issue more debt, to give the agencies the cash they will need. Which agencies own the most Treasuries? Social Security, by a long shot. Heres the detailed breakdown (as of June 30, 2014): Social Security (Social Security Trust Fund and Federal Disability Insurance Trust Fund) - $2.812 trillion Office of Personnel Management (Federal Employees Retirement, Life Insurance, Hospital Insurance Trust Funds, Postal Service Retiree Contributions) - $844.8 billion Dept. of Health and Human Services (Federal Hospital Insurance Trust Fund, Federal Supplementary Medical Insurance Trust Fund) - $220 billion Federal Deposit Insurance Corporation - $46.5 billion Deposit Insurance Fund - $42.7 billion. Department of Labor (Unemployment Trust Fund) - $36.1 billion Department of the Treasury (Exchange Stabilization Fund) - $22.7 billion Miscellaneous Small Agencies - $25.5 billion Other Programs and Funds - $1.103 trillion. (Source: Treasury Bulletin, Monthly Treasury Statement, Table 6. Schedule D-Investments of Federal Government Accounts in Federal Securities, August 30, 2013)... useconomy.about/od/monetarypolicy/f/Who-Owns-US-National-Debt.htm
Posted on: Tue, 30 Dec 2014 21:56:57 +0000