Who Is the US In Debt to?

It was 1917 when the United States had just joined World War I. With demands for military investment growing, the US Treasury Department was in desperate need of money. Without enough of its own, the Treasury Department had to borrow it from someone, but was also constitutionally required to receive congressional approval to take on debt and make financial decisions. Rather than oversee every increasingly common request and transaction, Congress figured, “Hey, let's give the Treasury Department power to oversee their own debt! But we have to limit that so we don't get ourselves in any trouble."

Thus the debt ceiling was born. It was a means to allow the Treasury Department to get money, accrue debt, and invest in everything the government needed to invest in without requiring constant approval from Congress, while still allowing Congress to control the total amount of debt accrued.

To See the complete list of Countries the US is in Debt to, go here:

#debt #debtceiling #weirdhistory

[DonaldMark-nese]

Invest judiciously, keep a stop loss figure. Shuffle between debt and equity wherever the ratio goes too off your target. As for the target, I recommend a Ratio like this Debt % should be equal to your age in years. If you are 20, debt is 20%, reset in equity. If the market falls or rises drastically, your debt % will change, which you should rebalance to 20% and bring back equity to 80%. Thus you would have bought low or booked profit depending on if it was a crash or a bull run.

[euler]

If i owe someone $1000, I have a problem.
If i owe someone $100, 000, 000, they have a problem.

[barttfisher]

The U.S. economy relies on ongoing credit and debt generation for sustenance. The Federal Reserve is expected to increase the money supply, leading to further debt accumulation for the average American. Meanwhile, foreign nations continue to desire the U.S. dollar, despite their own economies facing significant challenges, some even worse than that of the U.S. This situation raises concerns about who will ultimately bear the consequences of these economic dynamics.

[trevorslinkard]

And they have the audacity to give us a credit score

[darnellcapriccioso]

Since Biden took office, there seem to have been more unfavourable results in America. These results include effects on the markets, such as price declines and sharp increases in inflation, as well as bank failures. I wonder if the sudden increase in interest rates will help value investors or if it would be wiser to stay away from the stock and financial markets for the time being.

[GillerHeston]

It is a government inspired crisis this time. The Treasury have to sell Bonds to cover the trade imbalance and the government spending imbalance. In order to sell them they have to raise interest rates and the old long-term, low risk, low interest, AAA investments (including Treasury Bonds), held by the banks (often due to government regulatory policy), become next to worthless. The next milestone should be soon when the government issue a new batch of Bonds.

[ClementRusso]

Don't fret, the debt ceiling always goes up. I wonder if 2008 crisis survivors had it easier. I'm concerned about the stock market, I've lost $35, 000 this month, and my income is down. Worried I won't save enough for retirement as I can't add to my savings.

[Rochelletrem]

The financial sector and derivatives may have a Hindenburg moment if the US Treasury market collapses. Rising market illiquidity in the $14.8 trillion U.S. Treasury market, according to Bank of America, might affect other financial markets.

[morecomfterblur]

The debt is owed to the issuer of the debt. The ownership is displayed on a banner at the top of each bill (dollar). The Federal Reserve Central Bank.

[dmitrychirkov]

Imagine the situation:
You owe a bank so much money, that if you declare yourself a bankrupt, the whole bank would go down.
So, when the bank calls you to ask, when you gonna return your debt, you just answer "gimme more money right now or else!"
And they'll do just that before you even hang a phone. Happily, the bank can easily print the green for you.
The only problem is - where to export the inflation this time? But then again, you have a whole special agency to contact with the world leaders to make them borrow the most toxic actives and sign on the most ridiculous deals to make it their household problem. For a fair compensation ofc.

[patriciagarnett]

The Federal Reserve is a privately held bank, not part of the U.S. government.

[janker]

Owing debt to yourself sounds like a scam

[artbasss]

Answer: Federal reserve, which is a private central bank. The scale of this scam is mind boggling.

[jondonnelly]

Fun fact. There is not enough money in existence ($21.2 Trillion) to pay the $32 Trillion US debt back. It's literally an unpayable debt at this point.

[sinebar]

I was surprised the US owed China only about a $1T. I thought it was a lot more than that. I was also surprised that Canada held some US debt. I'm a Citizen of both countries so I don't really know what to think about the whole situation. I pay taxes to both the US and Canada so its a little weird for me. As a US citizen I owe Canada money but as a Canadian the US owes me money.🤔

[edwardhernandez]

Once we finally realize money is not real, then the answer is no one. With interest.

[luvmibratt]

As much taxes they take out of our paychecks its peculiar the US is in debt

[snailsaredumb]

The US owes money to the federal reserve. The federal reserve bank is a private institution who issues our currency and loans it to our government. Every dollar our government uses is borrowed and they tax it back to pay that debt, but it's never enough. Thats why the debt is always higher than we can pay when the bill comes due.

[sasori]

And yet, despite the many problems it causes, we continue to play the money game, as if theres no other option.

[annasonjaf]

The debt we owe ourselves and that Japan is #1 in foreign creditors.