Does the US government hold more debt than the public?

The public holds over $22 trillion of the national debt. 1 Foreign governments hold a large portion of the public debt, while the rest is owned by U.S. banks and investors, the Federal Reserve, state and local governments, mutual funds, pensions funds, insurance companies, and savings bonds.

Why does the US keep going into debt?

Loss of investment in other market securities Perhaps most importantly, as the risk of a country defaulting on its debt service obligation increases, the country loses social, economic, and political power. This, in turn, makes the national debt level a national security issue.

How does intragovernmental debt work?

What is intragovernmental debt? Intragovernmental debt is debt that one part of the government owes to another part. In almost all cases, it is debt held in government trust funds, such as the Social Security trust funds.

What is US intragovernmental debt?

Intragovernmental debt is debt that one part of the government owes to another part. In almost all cases, it is debt held in government trust funds, such as the Social Security trust funds.

Why do governments issue bonds and not simply print more money?

There’s a more technical reason why governments can’t simply print more money to pay off debt and pay for spending: they’re not in charge of it. Money supply and exchange rates are meant to reflect the size of an economy.

Can the United States just print money?

The U.S. Federal Reserve controls the money supply in the United States, and while it doesn’t actually print currency bills itself, it does determine how many bills are printed by the Treasury Department each year.

What makes up intragovernmental debt?

What is intragovernmental debt and why does it matter?

That’s called intragovernmental debt. It’s not part of the public debt and doesn’t impact the interest on the debt. That’s because it’s money the government owes itself. The majority of government debt is public— debt the American people own. The interest on that debt consumes 10\% of the FY 2020 U.S. federal budget.

How much debt does the government owe to other government agencies?

Intragovernmental Debt. This is the portion of the federal debt owed to 230 other federal agencies. In December 2018, intragovernmental holdings totaled $5.9 trillion or 27\% of the debt.

What are intragovernmental holdings?

Intragovernmental Holdings are mostly made up of the Government Account Series (GAS) held by government trust funds, revolving funds, and special funds. Debt Held by the Public includes all federal debt held by individuals, corporations, state and local governments, foreign governments, and GAS deposit funds, such as the Thrift Savings Plan.

What type of debt is held by the public?

Intragovernmental Holdings and Debt Held by the Public (Interest) Debt Held by the Public includes all federal debt held by individuals, corporations, state and local governments, foreign governments, and GAS deposit funds, such as the Thrift Savings Plan.