Last week I wrote about the 2009 federal budget deficit cresting $1 trillion. Today I bring you this number: $11,605,521,079,842.13. That's the U.S. government's total debt to the penny, courtesy of the incredibly detailed treasurydirect.gov.
In case you weren't able to decipher all the commas, the total debt is just north of $11.6 trillion--all of which has to be financed somehow. Luckily treasurydirect.gov breaks down how it's financed. Of that $11.6 trillion, $7.3 trillion is held (owned) by the public, and $4.3 trillion is held by intragovernmental agencies.
As defined on the website: the majority of the U.S. government's debt is held by foreign governments and everyday people like you and I (debt held by the public); the rest is held by other parts of the U.S. government (debt held intragovernmentally). Basically, most federal debt is held by foreign governments like China and Japan or governmental cooperatives like the Caribbean Banking Centers (Bahamas, Bermuda, etc.) and an association of Oil Exporters (Ecuador, Venezuela, etc.). Here's the full list of "Major Foreign Holders of Treasury Securities."
Basically, the U.S. is up to it's eyeballs in the sewer pond of debt. And that pond is about to get deeper.
But when life gives you lemons (or in this case, sewage) make lemonade. Treasury investments like savings bonds, bills and notes are endorsed by the federal government, making them virtually risk free. The interest rates aren't super high, but your investments aren't going to go belly-up unless the government does.
My great-grandmother purchased savings bonds for me when I was born and upon their maturity dates (when you can redeem the bonds) I received several thousand dollars to put toward my college tuition. Go here to find out if your Treasury investments are still earning interest, and their maturity dates. To get started investing in the government, go here.
On a related note, you can actually donate money to pay off the debt (scroll to the bottom of this page to find out how). That's right, if for some reason you don't feel the government gets enough of your money in taxes, they're willing to let you give more out of the goodness of your heart.
I don't know about you, but I'm about as likely to go take a refreshing dip in the local sewer pond as I am to give the government any money I'm not required to.
--Jens
Post new comment