Who Owns the US National Debt? refers to the various entities that hold US Treasury securities, which represent the national debt. These entities include:
- Foreign governments and central banks: These entities hold a significant portion of the US national debt, as they invest their foreign exchange reserves in US Treasuries.
- Domestic investors: These include individuals, pension funds, mutual funds, and other financial institutions that purchase US Treasuries as a safe and liquid investment.
- The Federal Reserve: The US central bank holds a substantial amount of the national debt as part of its monetary policy operations.
- Other government agencies and trust funds: These include entities such as the Social Security Trust Fund and the Medicare Trust Fund, which hold US Treasuries as part of their investment portfolios.
Importance, Benefits, and Historical Context: