The United States: Between Public Debt and External Debt, 2022

·       The American public debt in October 2022 amounted to $31.12 trillion, according to World Bank statistics and several sources listed below this article. Japan appears as the largest external creditor of the United States ( $1.23 trillion), as of 16-9-2022..., followed by other countries... while Social Security and pension funds were the largest domestic creditors in the United States....

·       The national debt of the United States is the total of the public debt held by other countries, the Federal Reserve, mutual funds, other entities and individuals, as well as intragovernmental holdings held by Social Security, the Military Retirement Fund, Medicare, and other pension funds.

·       There are two types of U.S. national debt. The U.S. total national public debt amounted to $31.12 trillion in October 2022, according to the U.S. Department of the Treasury, which manages the national debt through its Office of the Public Debt...

·       The office classifies the total debt into two types: intragovernmental debt and debt held by the public.

·       Intragovernmental Debt:

-        Treasury statistics show that it is indebted to many federal government agencies whose debt to the government reaches $6.82 trillion, as shown in October 2022 statistics.

-        These agencies invest in U.S. Treasury securities, which results in transferring the agencies’ excess revenues to the general fund where they are spent. They redeem their Treasurys for cash as needed. The federal government then either raises taxes or issues more debt to raise funds.

-        Social Security in the United States is the largest of the agencies holding most Treasury bills, notes and bonds, according to information published by the U.S. Department of the Treasury in its monthly Treasury statement.

-        Thus, Social Security trust funds, including the Federal Old-Age and Survivors Insurance Trust Fund and others, and the Federal Disability Insurance trust funds, held $2.75 trillion in Treasurys as of August 2022. The second-largest agency was the Military Retirement Fund valued at $1.18 trillion. Among other major holders were the Office of Personnel Management Retirement and Medicare ..!

·       Debt Held by the Public

-        The public in the United States owns more than $24.29 trillion of the national debt. Foreign governments own a large portion of the public debt, about $7.6 trillion, while public ownership also results from holdings by U.S. banks and investors, the Federal Reserve, state governments, local governments, mutual funds, pension funds, insurance companies, and savings bondholders (the public—individuals and institutions).

-        The Department of the Treasury details who holds what amount of the public debt in its quarterly Treasury Bulletin. Foreign and international investors held more than $7.6 trillion, according to the September 2022 bulletin, which included data through March 2022. State and local governments held $1.45 trillion, and mutual funds held $3.26 trillion.

-        Other holders of the public debt include insurance companies, U.S. savings bonds, private pension funds, other private holders including individuals, government-sponsored enterprises, brokers and dealers, banks, personal credit funds and banks, commercial and noncommercial firms, and other investors.

-        The national debt held by the public is not only in the form of bills, notes and Treasury bonds, but is also in Treasury Inflation-Protected Securities and state and local government securities.

-        If one adds the debt held by Social Security and all pension funds and retirement accounts, nearly half of U.S. Treasury debt is held in trust for retirement. Current and future retirees would be more harmed than others if the United States defaulted on its debt.

·       Current foreign ownership of U.S. debt

-        Japan owned $1.23 trillion of U.S. Treasurys in June 2022, making it the largest foreign holder of national debt. The second-largest holder is China, which owns $967.8 billion of U.S. debt. Both Japan and China want to keep the dollar valued higher than their own currencies. This helps keep their exports to the United States affordable, which helps their economies grow...!

-        China replaced the United Kingdom as the second-largest foreign holder in 2006, when its holdings rose to $699 billion.

-        The United Kingdom is the third-largest holder at $615.4 billion. Its holdings rose in ranking as Brexit continued to weaken its economy. Luxembourg ranks second with holdings of $306.8 billion. The Cayman Islands, Switzerland, Ireland, Belgium, France and Taiwan top the first 10.12 positions.

·       Through analysis of data issued by the Treasury section at the Federal Reserve Board dated 16-9-2022, these statistics showed a disclosure of the names of the creditor countries of the United States. The largest creditor countries of the United States according to the aforementioned statistics were: Japan, $1.234 trillion, followed by China with a total of $970 billion, while the United Kingdom (Britain) owed $634 billion; Taiwan followed with $239.9 billion Brazil with $237.6 billion... while Canada had $214.1 billion owed to the United States, then India with $212 billion. As for Korea (certainly South), its debt to the United States amounted to $112.3 billion sheqel.

·       I analyzed the amounts owed by European countries as debt to the United States... from the aforementioned statistics. Without Britain the amount reached $1.772 trillion. If Britain's debt is added to the total amounts owed by some European countries—12 countries in total, including Britain—the total debt of these countries to the United States becomes $2.407 trillion..! I present here the debt of each European country named in the international creditors list according to the Treasury—Federal Reserve Board statistics dated 16-9-2022.:

·       Luxembourg owes the United States $304.2 billion, Switzerland $287.3 billion, Belgium $285.5 billion, Ireland $277.2 billion, France $232.8 billion, Norway $111.8 billion, Germany $87.5 billion. Netherlands had debt of $65.5 billion, Sweden $43.9 billion, Italy $40.3 billion, and Poland $36.2 billion ..

·       As for the Arab creditor countries to the United States, four Arab countries appeared with a combined debt of about $247 billion.... Additionally, Israel appeared as a creditor country to the United States with $53.1 billion..!!... The amount of debt of each Arab country separately was as follows: the Kingdom of Saudi Arabia, whose debt amounted to $121.6 billion; Kuwait $49.4 billion; the United Arab Emirates had total debt to the United States of $41.3 billion; the fourth Arab country that appeared in the U.S. statistics was Iraq, whose total debt to the United States amounted to $34.6 billion. (Treasury—Federal Reserve statistics dated 16-9-2022)

·       I analyzed the debts of some countries to the United States that are considered Offshore areas (Offshore), and what caught my attention is that the debts of these areas, countries or islands are investment jurisdictions and are considered safe tax havens, and sometimes funds of obscure source. These countries are as follows:

· Cayman Islands(جزر كايمان)....A British Overseas Territory with self-governance, located in the western Caribbean Sea, south of Cuba and near Honduras... It is one of the largest offshore financial centres... and a tax haven..! Its debt to the United States of America amounted to $291.9 billion..

- center The territory is a major world offshore financial  

· As for Hong Kong, its debt amounted to $193.2 billion, while Singapore had a debt of $188.2 billion, and Bermuda (which is located in the North Atlantic Ocean, bordered on the west by the eastern and southern coast of the United States, is a self-governing territory under Britain - Overseas Territories - and is considered an offshore financial centre and a centre for insurance and reinsurance)... its debt to the United States of America amounted to $81.7 billion..!.

· As for the Bahamas ( Bahamas), one of the largest offshore centres in the world and a safe haven for investors... and for taxes... and which was mentioned in what became known as the Panama Papers, its debt to the United States amounted to $35.7 billion...!

· I also analyzed the countries in Latin America (South), which were listed as creditors of the United States of America, and they are as follows: Chile, whose total debt to the United States amounted to $38.7 billion; Colombia had a debt of $35.1 billion; the Republic of Peru had $32 billion.. Mexico also appeared in the list of creditor countries... it is one of the Central American countries, and it appeared as a creditor of the United States of America in the amount of $49.5 billion..!

· And the foreign debt of the United States, amounting to $7.6 trillion, comes in the form of Treasury bills.. while the amount $3.942 trillion is officially invested by governments, and $3.708 trillion is invested in the form of bonds, securities, and other debt instruments.....

·      Sources of the article:

· Financial information and statistics from the World Bank platform, the Federal Reserve Board, and the U.S. Department of the Treasury..

· An article on government debt in the United States: by Kimberly Amadeo – updated 4-10-2022 and reviewed by Robert Kelley, and edited by Lars Petersen on the renowned The Balance site in New York.

· U.S. Department of the Treasury. "Monthly Treasury Statement: For Fiscal Year 2021 Through August 31, 2021, and Other Periods."

· Department of the Treasury. “Ownership of Federal Securities.”

· U.S. Department of the Treasury. "Treasury Bulletin September 2021."

· U.S. Department. of the Treasury. "Major Foreign Holders of Treasury Securities."

· Financial Report of the United States Government 2022

· Global Economic Prospects June 2022

· Major foreign holders of treasury securities in billions of dollars ..Jul 2022

· Department of the Treasury. Federal Reserve Board sept.16,2022