United States Public Debt

United States public debt 1
United States public debt

The United States public debt is a
frequently reported measure of the
obligations of the United States federal
government and is presented by the
United States Treasury in two
components and one total:
• Debt Held by the Public , representing

all federal[1] securities held by
institutions or individuals outside the
United States Government;
• Intragovernmental Holdings,
representing U.S. Treasury securities
held in accounts which are
administered by the United States
Government, such as the OASI Trust
fund administered by the Social
Security Administration; and
• Total Public Debt Outstanding, which
is the sum of the above
components.[2]
As of March 25, 2011, the Total Public
Debt Outstanding of the United States of
U.S. debt from 1940 to 2010. Red lines indicate the Debt Held by the Public (net
America was $14.21 trillion and was
public debt) and black lines indicate the Total Public Debt Outstanding (gross
97.0% of calendar year 2010's annual public debt), the difference being that the gross debt includes funds held by the
gross domestic product (GDP) of $14.66 government (e.g. the Social Security Trust Fund). The second panel shows the two debt
trillion.[2] [3] [4] Using 2010 figures, the figures as a percentage of U.S. GDP (dollar value of U.S. economic production for that
year). Data from the President's proposed budget (Historical Tables) and other tables
total debt (96.3% of GDP) ranked 12th
listed when you click on the figure. The top panel is deflated so every year is in 2010
highest against other nations. dollars.
The national debt should not be confused

with the trade deficit, which is the difference between net imports and net exports. State and Local Government
Series securities, issued by state and local governments, are not part of the United States government debt.[5] The
deficit is presented on a cash rather than an accruals basis, although the accrual deficit provides more information on
the longer-term implications of the government's annual operations.[6]
The annual government deficit or surplus refers to the cash difference between government receipts and spending
ignoring intra-governmental transfers. The gross public debt increases or decreases as a result of this unified budget
deficit or surplus. However, there is certain spending (supplemental appropriations) that add to the gross debt but are
excluded from the deficit. Gross debt has increased over $500 billion each year since fiscal year (FY) 2003, with
increases of $1 trillion in FY2008, $1.9 trillion in FY2009, and $1.7 trillion in FY2010.[7]
History
The United States has had public debt
since its inception. Debts incurred
during the American Revolutionary
War and under the Articles of
Confederation led to the first yearly
reported value of $75,463,476.52 on
January 1, 1791. From 1796 to 1811
there were 14 surpluses and only 2
deficits. The first dramatic growth
spurt of the debt occurred because of
the War of 1812. In the first 20 years
following the War of 1812, 18
surpluses were experienced and the US
The US Federal Debt from 1800 to 1999 (debt held by the public)
paid off 99.97% of its debt.
The second dramatic growth spurt of

the debt occurred because of the Civil
War. The debt was just $65 million in
1860, but passed $1 billion in 1863 and
had reached $2.7 billion following the
war. In the following 47 years America
returned to the practice of running
surpluses during times of peace
experiencing 36 surpluses and only 11
deficits. During this period 55% of the
US national debt was paid off.
The next period of major growth in

debt came during WWI reaching $25.5
Graph of U.S. gross public debt between 1940 and 2010 as a percentage of GDP, broken
billion at its conclusion. It was
down by presidential terms. Year numbers refer to end of the fiscal year (that is, each year
followed by 11 straight surpluses and tick points to October 1 [July 1 before 1977] rather than January 1 of its calendar year),
saw the debt reduced by 36%. The with the rationale that the fiscal activities of the previous President and Congress impact
buildup and involvement in World War the economy for some period of time after the January inauguration of the subsequent
office-holders.
II plus social programs during the F.D.
Roosevelt (because of the Great
Depression) and Truman presidencies in the 1930s and '40s caused a sixteenfold increase in the gross public debt
from $16 billion in 1930 to $260 billion in 1950.
After this period, the growth of the gross public debt closely matched the rate of inflation where it tripled in size
from $260 billion in 1950 to around $909 billion in 1980. Gross debt in nominal dollars quadrupled during the
Reagan and Bush presidencies from 1980 to 1992. The net public debt quintupled in nominal terms.
In nominal dollars the net public debt rose and then fell between 1992 and 2000 from $3T in 1992 to $3.4T in 2000.
During the administration of President George W. Bush, the gross public debt increased from $5.7 trillion in
January 2001 to $10.7 trillion by December 2008.[3] Under President Barack Obama, the debt increased from $10.7
trillion to $14.2 trillion by February 2011.[8]
Since the U.S. economy has grown nearly every year since World War 2, the size of the national debt relative to the
economy (i.e., as a percentage of gross domestic product or GDP) is another key measure. Gross debt relative to
GDP rose to over 100% to pay for WW2 and then declined thereafter, rising during the 1980s as part of the Cold
War and again due to recessions and policy decisions in the early 21st century. During the 1970s, debt held by the
public declined from 28% GDP to 26% GDP. During the 1980s, it rose to 41% GDP. During the 1990s, it rose to
50% and then was reduced to 39% by the end of the decade. From 2000-2008, it rose from 35% to 40% and to 62%
by the end of fiscal year 2010.[9]
Valuation and measurement
Public and government accounts

The total or gross national debt is the sum of
the "debt held by the public" and
"intragovernmental" debt. As of February
2011, the "debt held by the public" was $9.6
trillion and the "intragovernmental debt"
was $4.6 trillion, for a total of $14.2
trillion.[10]
The national debt is also described in terms

of marketable vs. non-marketable securities.
As of February 2011, total marketable
securities were $9.0 trillion while the
non-marketable securities were $5.2 trillion.
Most of the marketable securities are
Detailed breakdown of government holders of treasury debt and debt instruments
Treasury notes, bills, and bonds held by used of the public portion.
investors and governments globally. The
non-marketable securities are mainly the "government account series" owed to certain government trust funds such
as the Social Security Trust Fund, which represented $2.5 trillion dollars in 2010.[10] [11] Other large
intragovernmental holders include the Federal Housing Administration, the Federal Savings and Loan Corporation's
Resolution Fund and the Federal Hospital Insurance Trust Fund (Medicare).
Fannie Mae and Freddie Mac obligations excluded

Although not included in the debt figures reported by the government, the U.S. government has moved to more
explicitly support the soundness of obligations of Freddie Mac and Fannie Mae, starting in July 2008 via the
Housing and Economic Recovery Act of 2008, and the September 7, 2008 Federal Housing Finance Agency (FHFA)
conservatorship of both government sponsored enterprises (GSEs). The on- or off-balance sheet obligations of those
two independent GSEs was just over $5 trillion at the time the conservatorship was put in place, comprised mainly of
mortgage payment guarantees.[12] The extent to which the government will be required to pay these obligations
depends on a variety of economic and housing market factors. The federal government provided over $110 billion to
Fannie and Freddie by 2010.[13]
Guaranteed obligations excluded

Starting in late 2008, the U.S. federal government is guaranteeing large amounts of obligations relating to mutual
funds, banks, and corporations under several new programs designed to deal with the problems initiated by the
Financial crisis of 2007–2010. Guarantees are off-balance sheet and therefore excluded in the calculation of federal
debt. The funding of direct investments made in response to the crisis, such as those made under the Troubled Assets
Relief Program, are captured by the debt totals.
Unfunded obligations excluded

The U.S. government is committed under current law to mandatory payments for programs such as Medicare,
Medicaid and Social Security. The GAO projects that payouts for these programs will significantly exceed tax
revenues over the next 75 years. The Medicare Part A (hospital insurance) payouts already exceed program tax
revenues and Social Security payroll taxes fully cover payouts only until 2017. These deficits require funding from
other tax sources or borrowing.[14]
The present value of these deficits or unfunded obligations is an estimated $45.8 trillion. This is the amount that
would have to be set aside during 2009 such that the principal and interest would pay for the unfunded commitments
through 2084. Approximately $7.7 trillion relates to Social Security, while $38.2 trillion relates to Medicare and
Medicaid. In other words, health care programs are nearly five times as serious a funding challenge as Social
Security. Adding this to the national debt and other federal commitments brings the total obligations to nearly $62
trillion.[15] However, these amounts are excluded from the national debt computation.
The Congressional Budget Office (CBO) has indicated that: "Future growth in spending per beneficiary for Medicare
and Medicaid—the federal government’s major health care programs—will be the most important determinant of
long-term trends in federal spending. Changing those programs in ways that reduce the growth of costs—which will
be difficult, in part because of the complexity of health policy choices—is ultimately the nation’s central long-term
challenge in setting federal fiscal policy."[16]
Measuring debt relative to gross domestic product (GDP)

GDP is a measure of the total size and
output of the economy. One measure of the
debt burden is its size relative to GDP. In
fiscal 2007, U.S. public debt was
approximately $5 trillion (36.8 percent of
GDP) and total debt was $9 trillion (65.5
percent of GDP.)[17] Public debt represents
money owed to those holding government
securities such as Treasury bills and bonds.
Total debt includes intra-governmental debt,
which includes amounts owed to the Social
Security Trust Funds (about $2.2 trillion in
FY 2007)[18] and Civil Service Retirement
Funds. By August 2008, the total debt was
$9.6 trillion.[19] 2010 Budget: Total Debt $ and % to GDP 2000-2010
Based on the 2010 U.S. budget, total

national debt will nearly double in dollar terms between 2008 and 2015 and will grow to nearly 100% of GDP,
versus a level of approximately 80% in early 2009.[20] Multiple government sources including the current and
previous presidents, the GAO, Treasury Department, and CBO have said the U.S. is on an unsustainable fiscal
path.[21] As the debt ratio increases, the exchange value of the dollar may fall. Paying back debt with cheaper
currency could cause investors (including other governments) to demand higher interest rates if they anticipated
further dollar depreciation. Paying higher interest rates could slow domestic U.S. growth.
Higher debt increases interest payments on the debt, which already exceed $430 billion annually as discussed below,
or about 15 cents of every tax dollar for 2008.[22] According to the CIA Factbook, only six other countries have debt
to GDP ratios over 100% for 2008, the largest of which is Japan at 170%.[23]
Further, a high public debt to GDP ratio may also slow economic growth. Economists Carmen Reinhart and Kenneth
Rogoff calculated that countries with public debt above 90 percent of GDP grow by an average of 1.3 percentage
points per year slower than less debt-ridden countries. The public debt-to-GDP ratio in March 2010 is about 60
percent of GDP; CBO projects it will reach 90 percent around 2020 under policies in place in 2010. If growth slows,
all of the economic challenges the U.S. faces will worsen.[24]
Calculating the annual change in debt

The annual change in debt is not equal to the
"total deficit" typically reported in the
media. Social Security payroll taxes and
benefit payments, along with the net balance
of the U.S. Postal Service are considered
"off-budget" while most other expenditure
and receipt categories are considered
"on-budget." The total federal deficit is the
sum of the on-budget deficit (or surplus) and
the off-budget deficit (or surplus). Since
FY1960, the federal government has run
on-budget deficits except for FY1999 and
FY2000, and total federal deficits except in
FY1969 and FY1998-FY2001.[25]
Comparison of Deficits to Change in Debt 2008.
In large part because of Social Security
surpluses, the total deficit is smaller than the
on-budget deficit. The surplus of Social Security payroll taxes over benefit payments is spent by the government for
other purposes. However, the government credits the Social Security Trust fund for the surplus amount, adding to the
"intragovernmental debt." The total federal debt is divided into "intragovernmental debt" and "debt held by the
public." In other words, spending the "off budget" Social Security surplus adds to the total national debt (by
increasing the intragovernmental debt) while the surplus reduces the "total" deficit reported in the media.
Certain spending called "supplemental appropriations" is outside the budget process entirely but adds to the national
debt. Funding for the Iraq and Afghanistan wars was accounted for this way prior to the Obama administration.
Certain stimulus measures and earmarks are also outside the budget process.
For example, in FY2008 an off-budget surplus of $183 billion reduced the on-budget deficit of $642 billion,
resulting in a total federal deficit of $459 billion. Media often reported the latter figure. The national debt increased
by $1,017 billion between the end of FY2007 and the end of FY2008.[26] The federal government publishes the total
debt owed (public and intragovernmental holdings) at the end of each fiscal year [27] and since FY1957, the amount
of debt held by the federal government has increased each year.
Ownership of debt
Because a large variety of people own the
notes, bills, and bonds in the "public"
portion of the debt, the U.S. Treasury also
publishes information, that groups the types
of holders by general categories to portray
who owns United States debt. In this data
set, some of the public portion is moved and
combined with the total government portion,
because this amount is owned by the Federal
Reserve as part of United States monetary
policy. (See Federal Reserve System)
Estimated ownership each year through time.
As is apparent from the chart, a little less
than half of the total national debt is owed to the "Federal Reserve and intragovernmental holdings". The foreign and
international holders of the debt are also put together from the notes, bills, and bonds sections. To the right is a chart
for the data as of June 2008:
Foreign ownership
As of January 2011, foreigners owned $4.45
trillion of U.S. debt, or approximately 47%
of the debt held by the public of $9.49
trillion and 32% of the total debt of $14.1
trillion. The largest holders were the central
banks of China ($1.1 trillion) and Japan
($885 billion).[28] [29] The share held by
foreign governments has grown over time,
rising from 25% of the public debt in
2007[30] and 13% in 1988.[31]
This exposure to potential financial or

political risk should foreign banks stop
Composition of U.S. Long-Term Treasury Debt held by foreign states, Nov.
buying Treasury securities or start selling
2005-Nov. 2010. June figures are results of comprehensive Treasury Department
them heavily was addressed in a June 2008 surveys.
report issued by the Bank of International
Settlements, which stated, "Foreign investors in U.S. dollar assets have seen big losses measured in dollars, and still
bigger ones measured in their own currency. While unlikely, indeed highly improbable for public sector investors, a
sudden rush for the exits cannot be ruled out completely."[32]
On May 20, 2007, Kuwait discontinued pegging its currency exclusively to the dollar, preferring to use the dollar in
a basket of currencies.[33] Syria made a similar announcement on June 4, 2007.[34] In September 2009 China, India
and Russia said they were interested in buying IMF gold to diversify their dollar-denominated securities.[35]
However, in July 2010 China's State Administration of Foreign Exchange "ruled out the option of dumping its vast
holdings of US Treasury securities" and said gold "cannot become a main channel for investing our foreign exchange
reserves" because the market for gold is too small and prices are too volatile.[36]
Forecasting the debt

Tracking current levels of debt is a
cumbersome but rather straightforward
process. Making future projections is much
more difficult for a number of reasons. For
example, before the September 11, 2001
attacks, the George W. Bush administration
projected in the 2002 budget that there
would be a $1.288 trillion surplus from 2001
through 2004.[37]
In the 2005 Mid-Session Review, however,

this had changed to a projected four-year
deficit of $851 billion, a swing of $2.138
2010 Budget: Projected deficits and debt increases in President
trillion.[38] The latter document states that Obama's 2010 Budget.
49 percent of this swing was due to
"economic and technical re-estimates", 29
percent was due to "tax relief", (mainly the
2001 and 2003 Bush tax cuts), and the
remaining 22 percent was due to "war,
homeland, and other enacted legislation"
(mainly expenditures for the War on Terror,
Iraq War, and homeland security).
Projections between different groups will

sometimes differ because they make
different assumptions. For example, in
August 2003, a Congressional Budget
Office report projected a $1.4 trillion deficit
from 2004 through 2013.[39]
However, a mid-term and long-term joint

analysis a month later by the Center on GAO Simulation assuming current spending levels continue.
Budget and Policy Priorities, the Committee

for Economic Development, and the Concord Coalition stated that "In projecting deficits, CBO follows mechanical
'baseline' rules that do not allow it to account for the costs of any prospective tax or entitlement legislation, no matter
how likely the enactment of such legislation may be." The analysis added in a proposed tax cut extension and
Alternative Minimum Tax reform (enacted by a 2005 act), prescription drug plan (Medicare Part D, enacted in a
2003 act), and further increases in defense, homeland security, international, and domestic spending. According to
the report, this "adjusts CBO's official ten-year projections for more realistic assumptions about the costs of budget
policies", raising the projected deficit from $1.4 trillion to $5 trillion.[40]
The 2010 Budget proposed by President Barack Obama projects significant debt increases, both in terms of dollars
and relative to GDP.[41] [42] The debt was projected to nearly double to $20 trillion by 2015, but was expected to
increase to nearly 100% of GDP by 2020 and remain at that level thereafter. The estimates assumed real GDP
growth (after inflation) ranging from 2.6% to 4.6% annually from 2010 through 2019, which exceeds Blue Chip
consensus estimates.[43] These 2009 projections were subject to revision as the debt had in fact reached about 96.5%
of GDP by FY2011, much earlier than 2020.
During FY 2008, approximately 76.6% of federal spending was in the following categories: Departments of Health
and Human Services (19.8%), Defense (20.3%) and Veterans Affairs (11.8%); Social Security Administration
(18.2%); interest on the public debt (6.6%).[14]
The Office of Management and Budget forecasts that, by the end of fiscal year 2012, gross federal debt will total
$16.3 trillion. Thus, the projected debt will equal 101% of projected gross domestic product, which represents a
milestone in the U.S. economy. Public debt alone, which excludes amounts that the government owes its citizens via
various trust funds, will be 67% of GDP by the end of fiscal 2012.[44]
Historical analysis of government spending or debt relative to GDP can be misleading, according to the GAO, CBO
and Treasury Department. This is because demographic shifts and per-capita spending are causing Social Security
and Medicare/Medicaid expenditures to grow significantly faster than GDP. If this trend continues, government
simulations under various assumptions project mandatory spending for these programs will exceed taxes dedicated to
these programs by more than $40 trillion over the next 75 years on a present value basis.[45]
According to the GAO, this will double debt-to-GDP ratios by 2040 and double them again by 2060, reaching 600
percent by 2080.[46] A GAO simulation indicates that Social Security, Medicare, and Medicaid expenditures alone
will exceed 20% of GDP by 2080, which is approximately the historical ratio of taxes collected by the federal
government. In other words, these mandatory programs alone will take up all government revenues under this
simulation.[45]
Causes of change in debt
2001 vs. 2009

According to the CBO, the U.S. last had a
surplus during fiscal year (FY) 2001. From
FY2001 to FY2009, spending increased by
6.5% of GDP (from 18.2% of GDP to
24.7%) while taxes declined by 4.7% of
GDP (from 19.5% of GDP to 14.8%). The
drivers of the expense increases (expressed
as % of GDP) are Medicare & Medicaid
(1.7%), Defense (1.6%), Income Security
such as unemployment benefits and food
stamps (1.4%), Social Security (0.6%) and
all other categories (1.2%). The drivers of
tax reductions are individual income taxes
(-3.3%), payroll taxes (-0.5%), corporate
income taxes (-0.5%) and other (-0.4%). Causes of Change in Federal Spending as % GDP 2001-2009 from CBO Data
The 2009 spending level is the highest
relative to GDP in 40 years, while the tax receipts are the lowest relative to GDP in 40 years. The next highest
spending year was 1985 (22.8%) while the next lowest tax year was 2004 (16.1%).[47]
2001 vs. 2012

The U.S. budget situation has deteriorated
significantly since 2001, when the
Congressional Budget Office (CBO)
forecast average annual surpluses of
approximately $850 billion from 2009-2012.
The average deficit forecast in each of those
years as of June 2009 was approximately
$1,215 billion. The New York Times
analyzed this roughly $2 trillion "swing,"
separating the causes into four major
categories along with their share:
• Recessions or the business cycle (37%);

• Policies enacted by President Bush
(33%);
Causes for Changes in CBO Forecasts.
• Policies enacted by President Bush and
supported or extended by President Obama (20%); and
• New policies from President Obama (10%).
CBO data is based only on current law, so policy proposals that have yet to be made law are not included in their
analysis. The article states that "President Obama’s agenda ... is responsible for only a sliver of the deficits", but that
he "...does not have a realistic plan for reducing the deficit..."[48] Presidents have no Constitutional authority to levy
taxes or spend money, as this responsibility resides with the Congress, although a President's priorities influence
Congressional action.[49]
Peter Orszag, the OMB Director under President Obama, stated in a November 2009 that of the $9 trillion in deficits
forecast for the 2010-2019 period, $5 trillion are due to programs from the prior administration, including tax cuts
from 2001 and 2003 and the unfunded Medicare Part D. Another $3.5 trillion are due to the financial crisis,
including reductions in future tax revenues and additional spending for the social safety net such as unemployment
benefits. The remainder are stimulus and bailout programs related to the crisis.[50]
2008 vs. 2009

The CBO reported in October 2009 reasons for the difference between the 2008 and 2009 deficits, which were
approximately $460 billion and $1,410 billion, respectively. Key categories of changes included: tax receipt declines
of $320 billion due to the effects of the recession and another $100 billion due to tax cuts in the stimulus bill (the
American Recovery and Reinvestment Act or ARRA); $245 billion for the Troubled Asset Relief Program (TARP)
and other bailout efforts; $100 billion in additional spending for ARRA; and another $185 billion due to increases in
primary budget categories such as Medicare, Medicaid, unemployment insurance, Social Security, and Defense -
including the war effort in Afghanistan and Iraq. This was the highest budget deficit relative to GDP (9.9%) since
1945.[51] The national debt increased by $1.9 trillion during FY2009, versus the $1.0 trillion increase during
2008.[52]
The Obama Administration also made four significant accounting changes to more accurately report the total
spending by the Federal government. The four changes were: 1) accounting for the Wars in Iraq and Afghanistan
(”overseas military contingencies”) in the budget rather than through the use of supplemental appropriations; 2)
assuming the Alternative Minimum Tax will be indexed for inflation; 3) accounting for the full costs of Medicare
reimbursements; and 4) anticipating the inevitable expenditures for natural disaster relief. According to
administration officials, these changes will make the debt over ten years look $2.7 trillion larger than it would
otherwise appear.[53]
Risks and obstacles
Risks to the U.S. dollar and economy

A high debt level may affect inflation, interest rates, and economic growth. A variety of factors are placing
increasing pressure on the value of the U.S. dollar, increasing the risk of devaluation or inflation and encouraging
challenges to dollar's role as the world's reserve currency. If another currency or basket of currencies replaced the
dollar as the reserve currency, the U.S. would face higher interest rates to attract capital, reducing economic growth
for the long-term. The Economist wrote in May 2009:
"Having spent a fortune bailing out their banks, Western governments will have to pay a price in terms
of higher taxes to meet the interest on that debt. In the case of countries (like Britain and America) that
have trade as well as budget deficits, those higher taxes will be needed to meet the claims of foreign
creditors. Given the political implications of such austerity, the temptation will be to default by stealth,
by letting their currencies depreciate. Investors are increasingly alive to this danger... "[54]
The Government Accountability Office (GAO), the Federal Government's auditor, argues that the U.S. is on a
fiscally "unsustainable" path and that politicians and the electorate have been unwilling to change this path.[14] The
2010 U.S. budget prepared by the President indicated annual debt increases of nearly $1 trillion annually through
2019, projecting the total U.S. national debt to grow to $23.3 trillion by 2019.[43] Further, the subprime mortgage
crisis has significantly increased the financial burden on the U.S. government, with over $10 trillion in commitments
or guarantees and $2.6 trillion in investments or expenditures as of May 2009, only some of which are included in
the budget document.[55]
The U.S. also has a large trade deficit, meaning imports exceed exports. Such deficits are only possible if there is a
large foreign investment, or a capital account surplus. The balance of payments identity requires that a country (such
as the USA) running a current account deficit also have a capital account (investment) surplus of the same amount.
In 2005, Ben Bernanke addressed the implications of the USA's high and rising current account (trade) deficit,
resulting from USA imports exceeding its exports. Between 1996 and 2004, the USA current account deficit
increased by $650 billion, from 1.5% to 5.8% of GDP.[56]
Debt levels may also affect economic growth rates. Economists Kenneth Rogoff and Carmen Reinhart reported in
2010 that among the 20 advanced countries studied, average annual GDP growth was 3-4% when debt was relatively
moderate or low (i.e. under 60% of GDP), but it dips to just 1.6% when debt was high (i.e. above 90% of GDP).[57]
The CBO reported several types of risk factors related to rising debt levels in a July 2010 publication:
• A growing portion of savings would go towards purchases of government debt, rather than investments in
productive capital goods such as factories and computers, leading to lower output and incomes than would
otherwise occur;
• If higher marginal tax rates were used to pay rising interest costs, savings would be reduced and work would be
discouraged;
• Rising interest costs would force reductions in important government programs;
• Restrictions to the ability of policymakers to use fiscal policy to respond to economic challenges; and
• An increased risk of a sudden fiscal crisis, in which investors demand higher interest rates.[58]
Rollover and maturity risks

In addition to the debt increase required to fund government spending in excess of tax revenues during a given year,
some Treasury securities issued in prior years mature and must be "rolled-over" or replaced with new security
issuance. During the financial crisis, the Treasury issued a sizable amount of relatively shorter-term debt, which
caused the average maturity on total Treasury debt to reach a 25-year low of just more than 50 months in 2009. As of
late 2009, roughly 43% of U.S. public debt needed to be rolled over within 12 months, the highest proportion since
the mid-1980s. The relatively short maturity of outstanding Treasury debt, coupled with the increased reliance on
foreign creditors, puts the U.S. at greater risk of sharply higher borrowing costs should risk perceptions change
abruptly in credit markets.[57]
Long-term risks to financial health of federal government

Several government agencies provide
budget and debt data and analysis.
These include the Government
Accountability Office (GAO), the
Congressional Budget Office (CBO),
the Office of Management and Budget
(OMB), and the U.S. Treasury
Department. These agencies have
reported that the federal government is
facing a series of critical long-term
financing challenges. This is because
expenditures related to entitlement
programs such as Social Security,
Medicare, and Medicaid are growing
considerably faster than the economy
overall, as the population grows older. Risks due to increasing entitlement spending, according to GAO's projections of future
trends
These agencies have indicated that
under current law, sometime between 2030 and 2040, mandatory spending (primarily Social Security, Medicare,
Medicaid, and interest on the national debt) will exceed tax revenue. In other words, all "discretionary" spending
(e.g., defense, homeland security, law enforcement, education, etc.) will require borrowing and related deficit
spending. These agencies have used such language as "unsustainable" and "trainwreck" to describe such a future.[14]
While there is significant debate about solutions,[59] the significant long-term risk posed by the increase in
entitlement spending is widely recognized,[60] with health care costs (Medicare and Medicaid) the primary risk
category.[61] [62] In a June 2010 opinion piece in the Wall Street Journal, former chairman of the Federal Reserve,
Alan Greenspan noted that "Only politically toxic cuts or rationing of medical care, a marked rise in the eligible age
for health and retirement benefits, or significant inflation, can close the deficit."[63] If significant reforms are not
undertaken, benefits under entitlement programs will exceed government income by over $40 trillion over the next
75 years.[62] According to the GAO, this will cause debt ratios relative to GDP to double by 2040 and double again
by 2060, reaching 600 percent by 2080.[14]
In 2006, Professor Laurence Kotlikoff argued the United States must eventually choose between "bankruptcy",
raising taxes, or cutting payouts. He assumes there will be ever-growing payment obligations from Medicare and
Medicaid.[64] Others who have attempted to bring this issue to the fore of America's attention range from Ross Perot
in his 1992 Presidential bid, to motivational speaker Robert Kiyosaki, and David Walker, former head of the
Government Accountability Office.[65] [66]
Thomas Friedman has argued that increasing dependence on foreign sources of funding will render the U.S. less able
to act independently.[67]
Moody's Investors Service warned in March 2010 that the United States' AAA-rated U.S Treasury bonds, while
currently not in danger, could be downgraded in the future if the U.S. government failed to rein in public debt,
saying that growing the economy cannot be the only solution.[68]
There is a significant difference between the reported budget deficit and the change in debt. The key differences are:
1) The Social Security surplus, which reduces the "off-budget" deficit often reported in the media; and 2)
Non-budgeted spending, such as for the Iraq and Afghanistan wars. The debt increased by approximately $550
billion on average each year during the 2003-2007 period, but then increased over $1 trillion during FY 2008.
The cumulative debt of the United States in the past 8 completed fiscal years was approximately $4.3 trillion, or
about 43% of the total national debt of ~$10.0 trillion as of September 2008.[3] [4] [69]
Interest expense
Budgeted net interest on the public
debt was approximately $240 billion in
fiscal years 2007 and 2008. This
represented approximately 9.5% of
government spending. Interest was the
fourth largest single budgeted
disbursement category, after defense,
Social Security, and Medicare.[70]
Despite higher debt levels, this
declined to $189 billion in 2009 or
approximately 5% of spending, due to
lower interest rates. Average interest
rates declined due to the crisis from
1.6% in 2008 to 0.3% in 2009.[71]
During FY2008, the government also

Components of interest on the debt.
accrued a non-cash interest expense of
$212 billion for intra-governmental
debt, primarily the Social Security Trust Fund, for a total interest expense of $454 billion.[72] This accrued interest is
added to the Social Security Trust Fund and therefore the national debt each year and will be paid to Social Security
recipients in the future.
Public debt owned by foreigners has increased to approximately 50% of the total or approximately $3.4 trillion.[73]
As a result, nearly 50% of the interest payments are now leaving the country, which is different from past years
when interest was paid to U.S. citizens holding the public debt. Interest expenses are projected to grow dramatically
as the U.S. debt increases and interest rates rise from very low levels in 2009 to more typical historical levels. CBO
estimates that nearly half of the debt increases over the 2009-2019 period will be due to interest.[74]
Should interest rates return to historical averages, the interest cost would increase dramatically. Historian Niall
Ferguson described the risk that foreign investors would demand higher interest rates as the U.S. debt levels increase
over time in a November 2009 interview.[75]
Monitoring the risks of increasing debt levels

Various financial indicators may provide an early warning that market forces are reacting to an increasing level of
debt. Examples include Treasury security interest rates (yields), Treasury auction results, credit default swap spreads,
and TIPS spreads.
• Treasury note yields: A rising yield for a security of a given maturity could indicate lower demand for Treasury
bonds among investors, or nervousness about future rates of inflation. The "yield curve" (a graph that relates the
yields of similar securities of different maturities) provides similar information.
• Treasury auctions: The ease with which new securities can be sold reflects the demand for them. For example, a
difference between the interest rate that debt trades prior to auction and the yield required to clear the market at
auction is called the "tail." A large auction “tail” would be a sign of declining interest from the market. The
Treasury also reports the bid-to-cover ratio for each auction, which is the number of market bids received relative
to the number of bids accepted and the ratio of international buyers.
• Credit default swap (CDS) spreads: CDS are insurance-like derivative products that offer protection against bond
defaults. CDS spreads essentially measure the current market price of insurance against default. When the market
perceives a bond is at an increased risk of default, the CDS written on those bonds will increase in price.
• TIPS spreads: A key measure of inflation expectations among U.S. bond market investors is the difference
between the yield on nominal Treasury bonds and the yield for Treasury inflation-protected securities, or “TIPS.”
This difference is a gauge of investors’ beliefs about future U.S. inflation rates. A growing spread between
nominal Treasuries and TIPS would indicate that investors are concerned that U.S. fiscal and monetary policy
could lead to higher inflation in the future.[57]
Debates
Is there a "danger level" of debt?

Economists debate the level of debt relative to GDP that signals a "red line" or dangerous level, or if any such level
exists. Economists Kenneth Rogoff and Carmen Reinhart reported in January 2010 that 90% of GDP represents this
danger level.[76] Reinhart testified to the U.S. Senate in February 2010, stating:[77]
Our main finding is that across both advanced countries and emerging markets, high debt/GDP levels
(90 percent and above) are associated with notably lower growth outcomes. Above 90 percent, median
growth rates fall one percent, and average growth falls considerably more. In addition, for emerging
markets, there appears to be a more stringent threshold for total external debt/GDP; when external debt
reaches 60 percent of GDP, annual growth declines by about two percent and for higher levels, growth
rates are roughly cut in half. Seldom do countries simply 'grow' their way out of deep debt burdens.
Economist Paul Krugman disputed the existence of a solid debt threshold or danger level, arguing that low growth
causes high debt rather than the other way around.[78] He also points out that in Europe, Japan, and the US this has
been the case. In the US the only period of debt over 90% of GDP was after World War II when "when real GDP
was falling, not because of debt problems, but because wartime mobilization was winding down and Rosie the
Riveter was becoming a suburban housewife."[79]
Economists also debate which debt figure is the right one to use. Paul Krugman argued in May 2010 that the debt
held by the public is the right measure to use, while Reinhart has testified to the President's Fiscal Reform
Commission that gross debt is the right figure. Certain members of the Commission are focusing on gross debt.[78]
The Center on Budget and Policy Priorities (CBPP) cited research by several economists supporting the use of the
lower debt held by the public figure as a more accurate measure of the debt burden, disagreeing with these
Commission members.[80]
Fed Chair Ben Bernanke stated in April 2010:[81]
Neither experience nor economic theory clearly indicates the threshold at which government debt begins
to endanger prosperity and economic stability. But given the significant costs and risks associated with a
rapidly rising federal debt, our nation should soon put in place a credible plan for reducing deficits to
sustainable levels over time.
Current projections indicate the debt held by the public figure will hit 90% of GDP by 2020; the total debt was over
97% of GDP during February 2011.[82]
Is intragovernmental debt "real" debt?

There is debate regarding the economic nature of the intragovernmental debt, which was approximately $4.6 trillion
in February 2011. A significant portion of the intragovernmental debt is the $2.6 trillion Social Security Trust
Fund.[83]
For example, the CBPP argues:[80]
Debt held by the public is important because it reflects the extent to which the government goes into
private credit markets to borrow. Such borrowing draws on private national saving and international
saving, and therefore competes with investment in the nongovernmental sector (for factories and
equipment, research and development, housing, and so forth). Large increases in such borrowing can
also push up interest rates and increase the amount of future interest payments the federal government
must make to lenders outside of the United States, which reduces Americans’ income. By contrast,
intragovernmental debt (the other component of the gross debt) has no such effects because it is simply
money the federal government owes (and pays interest on) to itself.
If the U.S. continues to run "on budget" deficits as projected by the CBO and OMB for the foreseeable future, it will
have to issue marketable Treasury bills and bonds (i.e., debt held by the public) to pay for the projected shortfall in
the Social Security program. This will result in "debt held by the public" replacing "intragovernmental debt" to the
extent of the Social Security Trust Fund during the period the Trust Fund is liquidated, which is expected to occur
between 2015 and the mid-2030s. This replacement of intragovernmental debt with debt held by the public would
not occur if: a) The U.S. runs on-budget surpluses sufficient to offset "off-budget" deficits in the Social Security
program; or b) Social Security is reformed to maintain an off-budget surplus.[84]
Debt clocks
In several cities around the United States, there are national debt
clocks—electronic billboards that illustrate government debt.
Some also attempt to show the money owed per capita or per
family. There is a significant level of fluctuation day-to-day, both
up and down, so any "clocks" must be continually re-set with
proper values.
The first and most famous debt clock, the National Debt Clock
located near Times Square in New York City, was created by real
estate investor Seymour Durst.[85] [86] With Seymour's death, his
son Douglas Durst took over responsibility for the clock through
the Durst Organization.
Although the total debt continued to increase, the clock was
deactivated in 2000 when the public debt began to decrease (after
adjusting for inflation) due to budget surpluses.[87] However,
following large increases in the debt (total and public) a few years
later, the clock was reactivated in July 2002.[88]
The National Debt Clock in late 2009
In 2004, the original clock was unmounted from its location near
42nd Street; the building has since made way for One Bryant Park.
An updated model, which could run backwards, was installed one block away on a Durst building at 1133 Avenue of
the Americas. Since September 30, 2008, when the debt surpassed $10 trillion, the clock's dollar sign has been
replaced by the extra digit. An upgrade adding to the digits had been announced for 2009, but so far has not been
undertaken.
Appendix
National debt for selected years
End as % Debt as %
Gross Gross GDP
of of GDP Held By of GDP
Debt in Debt in $Billions
Fiscal $Billions Low-High Public (Treas/MW, OMB/BEA[4]
$Billions
Year undeflated undeflated est. ($Billions) OMB or est.=MW.com
[69] [87] [89] or a - Treas. Treas/BEA)
Treas. OMB
audit
1910 2.653 8.0 2.653 8.0 est. 32.8
1920 25.95 29.2 25.95 29.2 est. 88.6
1927 [90] 19.2 18.51 19.2 est. 96.5

18.51
1930 16.19 16.6 16.19 16.6 est. 97.4
1940 42.97 50.70 44.4-52.4 42.97 42.1 96.8/
1950 257.3 256.9 91.2-94.2 219.0 80.2 273.1/281.7
1960 286.3 290.5 54.6-56.0 236.8 45.6 518.9/523.9
1970 370.9 380.9 36.2-37.6 283.2 28.0 1,013/1,026
1980 907.7 909.0 33.4 711.9 26.1 2,724
1990 3,233 3,206 56.0-56.4 2,412 42.1 5,735

2000 (a1)5,674 5,629 a 3,410 34.7 9,821

57.6
2001 (a2)5,807 5,770 a 3,320 32.5 10,225

56.6
2002 (a3)6,228 6,198 a 3,540 33.6 10,544

59.0
2003 (a)6,783 6,760 a 3,913 35.6 10,980

61.8
2004 (a)7,379 7,355 a 4,296 36.8 11,686

63.2
2005 (a4)7,933 7,905 a 4,592 36.9 12,446

63.6
2006 (a5)8,507 8,451 a 4,829 36.5 13,255

64.0
2007 (a6)9,008 8,951 a 5,035 36.2 13,896

64.8
2008 (a7)10,025 9,986 a 5,803 40.2 14,394

69.6
2009 (a8)11,910 11,876 a 7,552 53.6 ~14,098

~84.4
2010 (a9)13,562 13,529 a 9,023 62.2 ~14,508/14,512

~93.4
Fiscal years 1940-2009 GDP figures are derived from February 2011 Office of Management and Budget figures which contained revisions of
prior year figures due to significant changes from prior GDP measurements. Fiscal years 1950-2010 GDP measurements are derived from
December 2010 Bureau of Economic Analysis figures which also tend to be subject to revision, especially more recent years. The two measures in
Fiscal Years 1980, 1990 and 2000-2009 diverge only slightly.
Absolute differences from advance (one month after) BEA reports of GDP percent change to current findings (as of January 2011) found in
revisions are stated to be 1.2% ± 1.8% or a 95% probability of being within the range of 0.0-3.0%, assuming the differences to occur according to
standard deviations from the average absolute difference of 1.2%. E.g. with an advance report of a $500 billion increase of a $15 trillion GDP, for
example, one could be 95% confident that the range would be 0.0 to 3.0% different than 3.3% (500 ÷ 15,000) or $0 to $450 billion different than
the hypothetical $500 billion.
Fiscal years 1940-1970 begin July 1 of the previous year (for example, Fiscal Year 1940 begins July 1, 1939 and ends June 30, 1940); fiscal years
1980-2010 begin October 1 of the previous year.
Intergovernmental debts before the Social Security Act are presumed to equal zero.
[91]
1909-1930 calendar year GDP estimates are from MeasuringWorth.com Fiscal Year estimates are derived from simple linear interpolation.
[92]
(a1)Audited figure was "about $5,659 billion."
[93]
[93]
[5]
(a)Audited figure was said to be "about" the stated figure.
[94]
[94]
[72]
[72]
[71]
[95]
Foreign holders of U.S. Treasury Securities

The following is a list of the Foreign Holders of U.S. Treasury Securities as listed by the U.S. Treasury (revised by
June 2010 survey completed February 28, 2011):[73]
Leading Foreign Holders of US Treasury Securities
December 2010 November 2010
Nation/Territory billions of dollars percent of total foreign billions of dollars percent of total foreign
(est.) holdings (est.) holdings
China 1160.1 26.1% 1164.1 26.4%
Japan 882.3 19.9% 875.9 19.8%
United Kingdom 272.1 6.1% 242.5 5.5%
211.9 4.8% 204.3 4.6%

Oil exporters1
Brazil 186.1 4.2% 189.8 4.3%
168.6 3.8% 159.3 3.6%

Caribbean Banking Centers2
Hong Kong (Special Administrative 134.2 3.0% 134.9 3.1%

Region)
Switzerland 107.0 2.4% 107.0 2.4%
Taiwan 155.1 3.5% 154.4 3.5%
Russia 151.0 3.4% 167.3 3.8%
Subtotal of top 10 holders 3,428.4 77.2% 3,399.5 77.0%
Grand Total 4,439.6 100.0% 4,413.8 100.0%
1
Saudi Arabia, Venezuela, Libya, Iran, Iraq, the United Arab Emirates, Bahrain, Kuwait, Oman, Qatar, Ecuador,
Indonesia, Algeria, Gabon, and Nigeria
2
Bahamas, Bermuda, Cayman Islands, Netherlands Antilles, British Virgin Islands and Panama
Statistics and comparisons

• U.S. official gold reserves, totaling 275.0 million troy ounces, have a book value as of 31 December 2010 of
approximately $11.6 billion,[96] vs. a commodity value as of 23 January 2011 of approximately $369 billion.[97]
• A total of 161,000 tonnes of gold have been mined in human history, as of 2009.[98] This is roughly equivalent to
5.175 billion troy ounces, which, at $1350 per troy ounce, would be $7.0 trillion.
• Foreign exchange reserves $133 billion as of December 2010.[99]
• The Strategic Petroleum Reserve had a value of approximately $65 billion as of January 2011, at a Market Price
of $98/barrel with a $15/barrel discount for sour crude.[100]
• The national debt equates to $44,900 per person U.S. population, or $91,500 per member of the U.S. working
population,[101] as of December 2010.
• In 2008, $242 billion was spent on interest payments servicing the debt, out of a total tax revenue of $2.5 trillion,
or 9.6%. Including non-cash interest accrued primarily for Social Security, interest was $454 billion or 18% of tax
revenue.[72]
• Total U.S. household debt, including mortgage loan and consumer debt, was $11.4 trillion in 2005. By
comparison, total U.S. household assets, including real estate, equipment, and financial instruments such as
mutual funds, was $62.5 trillion in 2005.[102]
• Total U.S Consumer Credit Card revolving credit was $931.0 billion in April 2009.[103]
• Total third world debt was estimated to be $1.3 trillion in 1990.[104]
• The U.S. balance of trade deficit in goods and services was $725.8 billion in 2005.[105]
• The global market capitalization for all stock markets that are members of the World Federation of Exchanges
was $32.5 trillion by the end of 2008.[106]
• The 2009 net worth of the 400 richest U.S. citizens is $1.27 trillion.[107]
• According to a retrospective Brookings Institute study published in 1998 by the Nuclear Weapons Cost Study
Committee (formed in 1993 by the W. Alton Jones Foundation), the total expenditures for U.S. nuclear weapons
from 1940 to 1998 was $5.5 trillion in 1996 Dollars.[108] The total public debt at the end of fiscal year 1998 was
$5,478,189,000,000 in 1998 Dollars[109] or $5.3 trillion in 1996 Dollars. The entire public debt in 1998 was
therefore equivalent to the funds spent on the research, development, and deployment of U.S. nuclear weapons
and nuclear weapons-related programs during the Cold War.[108] [110] [111]
Table: International debt comparisons
Gross debt as percentage of GDP
2007 2011
Forecast
Austria 62% 82%
France 70% 99%
Germany 65% 85%
Greece 104% 130%
Ireland 28% 93%
Italy 112% 130%
Japan 167% 204%
Netherlands 52% 82%
Portugal 71% 97%
Spain 42% 74%
United Kingdom 47% 94%
United States 62% 100%
37% 41%
Asia1
23% 29%
Central Europe2
41% 35%
Latin America3
Sources: IMF, World Economic Outlook (emerging market economies); OECD, Economic Outlook (advanced
economies)[112]
1
China, Hong Kong SAR, India, Indonesia, Korea, Malaysia, the Philippines, Singapore and Thailand
2
The Czech Republic, Hungary and Poland
3
Argentina, Brazil, Chile and Mexico
Recent additions to the public debt of the United States
Deficit and debt increases 2001-2009.
[3] [4] [69] [87]

Recent additions to U.S. public debt
Fiscal year (begins Value of % of GDP Total % of GDP

10/01 of prev. year) increase debt
$Billions $Billions
1994 $282–292 4.0-4.2% ~$4,650 66.6-67.2%
1995 278-281 3.8% ~4,950 67.0-67.8%
1996 251-260 3.3-3.4% ~5,200 67.2-67.6%
1997 188 2.3% ~5,400 65.4-66.0%
1998 109-113 1.3% ~5,500 63.2-63.8%
1999 128-130 1.4% 5,641 61.2%
2000 18 0.2% 5,659 57.6%
2001 133 1.3% 5,792 56.6%
2002 421 4.0% 6,213 59.0%
2003 570 5.2% 6,783 61.8%
2004 596 5.1% 7,379 63.2%
2005 539 4.3% 7,918 63.6%
2006 575 4.3% 8,493 64.0%
2007 500 3.6% 8,993 64.8%
2008 1,018 7.1% 10,011 69.6%
2009 1,887 ~13.4% 11,898 ~84.4%
2010 1,653 ~11.4% 13,551 ~93.4%
2011 ~633 ~14,200 ~96.8%
(Oct.'10-Feb.'11)
The more precise FY 1999-2010 debt figures are derived from Treasury audit results.
The variations in the FY 2009-2010 figures are due to double-sourced or relatively preliminary GDP figures.
Debt ceiling
The Second Liberty Bond Act of 1917 established a statutory limit on federal debt.[113] Congress had previously
approved each debt issuance separately. The debt limit provided the U.S. Treasury with more leeway in the
administration of debt, allowing for modern management techniques in government finance.
The U.S. Treasury Department now conducts more than 200 sales of debt by auction every year. The Treasury has
been granted authority by Congress to issue such debt as was needed to fund government operations as long as the
total debt (excepting some small special classes) does not exceed a stated ceiling.
The most recent increase in the U.S. debt ceiling to $14.294 trillion by H.J.Res. 45 [114] was signed into law on
February 12, 2010.[115] Congress is currently considering whether and how much to extend the debt ceiling
again.[116]
Even when the debt ceiling is reached, the U.S. Treasury has several mechanisms to temporarily acquire a limited
amount of funding to buy some time and not default.[117] This was used in 2004, when the debt ceiling was reached
on October 14, 2004 and actions were taken by the administration to stay below the debt ceiling.[118] The ceiling was
later raised on November 16, 2004 with $800 billions to a total of $8,184 billions.
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External links
• Documentary about the debt, "Ten Trillion and Counting" (http://www.pbs.org/wgbh/pages/frontline/
tentrillion/), by PBS Frontline
• Bureau of the Public Debt (http://www.publicdebt.ustreas.gov/)
• Debt Held by the Public & Intragovernmental Holdings (http://www.treasurydirect.gov/NP/
BPDLogin?application=np)
• The United States Public Debt, 1861 to 1975 (http://eh.net/encyclopedia/?article=noll.publicdebt)
• GAO Citizen's Guide - 2008 (http://www.gao.gov/financial/citizensguide2008.pdf)
Article Sources and Contributors 26
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United States Public Debt

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United States Public Debt

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United States public debt 1

United States public debt

• Debt Held by the Public , representing

The national debt should not be confused

The second dramatic growth spurt of

The next period of major growth in

Valuation and measurement

Public and government accounts

The national debt is also described in terms

Fannie Mae and Freddie Mac obligations excluded

Guaranteed obligations excluded

Unfunded obligations excluded

Measuring debt relative to gross domestic product (GDP)

Based on the 2010 U.S. budget, total

Calculating the annual change in debt

This exposure to potential financial or

Forecasting the debt

In the 2005 Mid-Session Review, however,

Projections between different groups will

However, a mid-term and long-term joint

Budget and Policy Priorities, the Committee

Causes of change in debt

2001 vs. 2009

2001 vs. 2012

• Recessions or the business cycle (37%);

2008 vs. 2009

Risks and obstacles

Risks to the U.S. dollar and economy

Rollover and maturity risks

Long-term risks to financial health of federal government

During FY2008, the government also

Monitoring the risks of increasing debt levels

Is there a "danger level" of debt?

Is intragovernmental debt "real" debt?

National debt for selected years

1910 2.653 8.0 2.653 8.0 est. 32.8

1920 25.95 29.2 25.95 29.2 est. 88.6

1927 [90] 19.2 18.51 19.2 est. 96.5

1930 16.19 16.6 16.19 16.6 est. 97.4

1940 42.97 50.70 44.4-52.4 42.97 42.1 96.8/

1950 257.3 256.9 91.2-94.2 219.0 80.2 273.1/281.7

1960 286.3 290.5 54.6-56.0 236.8 45.6 518.9/523.9

1970 370.9 380.9 36.2-37.6 283.2 28.0 1,013/1,026

1980 907.7 909.0 33.4 711.9 26.1 2,724

1990 3,233 3,206 56.0-56.4 2,412 42.1 5,735

2000 (a1)5,674 5,629 a 3,410 34.7 9,821

2001 (a2)5,807 5,770 a 3,320 32.5 10,225

2002 (a3)6,228 6,198 a 3,540 33.6 10,544

2003 (a)6,783 6,760 a 3,913 35.6 10,980

2004 (a)7,379 7,355 a 4,296 36.8 11,686

2005 (a4)7,933 7,905 a 4,592 36.9 12,446

2006 (a5)8,507 8,451 a 4,829 36.5 13,255

2007 (a6)9,008 8,951 a 5,035 36.2 13,896

2008 (a7)10,025 9,986 a 5,803 40.2 14,394

2009 (a8)11,910 11,876 a 7,552 53.6 ~14,098

2010 (a9)13,562 13,529 a 9,023 62.2 ~14,508/14,512

Foreign holders of U.S. Treasury Securities

Leading Foreign Holders of US Treasury Securities

December 2010 November 2010

China 1160.1 26.1% 1164.1 26.4%

Japan 882.3 19.9% 875.9 19.8%

United Kingdom 272.1 6.1% 242.5 5.5%

211.9 4.8% 204.3 4.6%

Brazil 186.1 4.2% 189.8 4.3%