Does anyone know who we owe the $37 trillion to and how exactly we go about paying it back?
Do we owe it to ourselves?
Do we owe it to future generations?
Do we owe it to foreign banks and oligarchs?
I say, rather than sending checks out, or trying to figure out which creditors to pay out first, simply turn off the printing presses for a while and stop creating new fiat money backed by nothing.
Put any cash surplus in a reserve and spend it efficiently while giving the printing presses a rest.
This is the best question I have seen anyone ask so far.
When there’s not enough money from taxes, the government borrows it. It does this by selling bonds, which are like IOUs. People, banks, and even other countries buy these bonds, lending money to the government with the promise that the government will pay it back with interest.
So, in very simple terms, the U.S. national debt is like a big tab that’s been run up over time because the government has consistently spent more than it’s taken in, and it borrows to cover the difference. Each year, if the government doesn’t balance its books, the debt grows.
About 2 years ago Janet Yellen help a bond auction and no one would buy those bonds. The Federal Reserve stepped in and bought them, so the printing presses could go ‘whir’ at the Treasury. The Federal Reserve held those bonds and eventually got them off their balance sheet. The accounting ‘trick’ kept the Biden regime from a full out default. As of the most recent data, Japan holds the most U.S. Treasury securities, making it the largest foreign holder of U.S. bonds. About 1.15 Trillion.
Asked Grok for the breakdown:
Here’s a breakdown of who holds the rest of the U.S. national debt:
Foreign Countries:
China: The second largest holder with about $749.0 billion in U.S. Treasuries.
United Kingdom: Third, with approximately $690.2 billion.
Luxembourg: Holds about $373.5 billion.
Canada: Owns roughly $328.7 billion.
Other foreign countries hold varying amounts, with the total foreign ownership being around $7.9 trillion as of April 2024.
Domestic Holders:
The Federal Reserve: Owns about $5.24 trillion, making it the largest domestic holder.
U.S. Government Trust Funds (like Social Security, Medicare, etc.): These intragovernmental holdings are significant, with Social Security trusts alone holding $2.71 trillion as of December 2022. The total intragovernmental debt was around $7.0 trillion in December 2023.
Mutual Funds and Pension Funds: Hold a substantial portion, with mutual funds owning about 20% of debt not held by the Federal Reserve, and private pension funds around 4%.
Insurance Companies: Own about 3% of the domestic debt not held by the Federal Reserve.
Depository Institutions (Banks): Own about 13% of domestic debt not held by the Federal Reserve.
State and Local Governments: Also have holdings, though less compared to the above, at around 13% of domestic debt not held by the Federal Reserve.
Individuals: U.S. citizens and other domestic investors hold debt through various means like U.S. Savings Bonds.
Other Domestic Investors: This includes corporations, private investors, and other entities within the U.S., but specific breakdowns for these groups can vary.
In summary, while foreign countries hold nearly $7.9 trillion, the majority of the U.S. national debt is held domestically, with significant portions held by the Federal Reserve, various government trust funds, and a mix of U.S. financial institutions and private investors. The total national debt as of January 2025 was over $36.2 trillion, with public debt (debt held by the public) at about $28.88 trillion, and the rest being intragovernmental debt.
Lastly...please keep in mind that THE FEDERAL RESERVE is not a government entity. It is a private bank.
Sooner or later a Democrat will be in charge, and/or Dems in majority, and any "reserve" is a cookie jar. Paying down the debt sounds nice but they'll just run it up again.
The best use of the funds is whatever discredits them the most, and prevents further abuse the best.
Maybe build more federal prisons for corruptocrats. ;)
Or on my wish list, buy land. Panama, Canada, Greenland...