KB9BVN
02-25-2008, 05:28 PM
http://www.treasurydirect.gov/govt/reports/pd/feddebt/feddebt_ann2007.pdf
Snipped from the "Schedule of Federal Debt" for the Fiscal Years 2006 and 2007.
Over the last several years, we have noted a trend in the amount of Treasury securities held by foreign and international investors. According to amounts reported in the September 2007 Treasury Bulletin, Treasury estimates that the amount of Treasury securities held by foreign and international investors has increased $837 billion, from $1,383 as of June 30, 2003, to $2,220 billion as of June 30, 2007. As of June 30, 2007, this represents an estimated 45 percent of debt held by the public, up from about 36 percent as of June 30, 2003. The United States benefits from foreign purchases of Treasury securities because foreign and international investors fill part of the U.S. government’s borrowing needs. However, to service this foreign-held debt, the U.S. government must send interest payments abroad, which adds to the incomes of residents of other countries rather than to the incomes of U.S. residents. In addition, this increasing reliance on foreign and international investors to finance the deficits of the U.S. government presents potential risk to the U.S. economy, especially since the U.S. gross national saving rate is low by U.S. historical standards.
So about 27% of our total National Debt is owed to foreigners. Read on...
Another trend we have observed is the decline in annual budget deficits. As widely reported last month, the fiscal year 2007 budget deficit of $163 billion represents the third consecutive decline in budget deficits, down from last year’s deficit of $248 billion. Certainly lower short-term deficits are better than higher short-term deficits. However, our nation’s real challenge is not short-term deficits, rather it’s the U.S. government’s impending longer-term structural deficits and related debt burdens. Indeed, what we call the longer-term fiscal challenge is not in the distant future. The first of the baby boomers become eligible for early retirement under Social Security on January 1, 2008—only two months from now— and for Medicare benefits just 3 years later.
Congress is the problem.
Snipped from the "Schedule of Federal Debt" for the Fiscal Years 2006 and 2007.
Over the last several years, we have noted a trend in the amount of Treasury securities held by foreign and international investors. According to amounts reported in the September 2007 Treasury Bulletin, Treasury estimates that the amount of Treasury securities held by foreign and international investors has increased $837 billion, from $1,383 as of June 30, 2003, to $2,220 billion as of June 30, 2007. As of June 30, 2007, this represents an estimated 45 percent of debt held by the public, up from about 36 percent as of June 30, 2003. The United States benefits from foreign purchases of Treasury securities because foreign and international investors fill part of the U.S. government’s borrowing needs. However, to service this foreign-held debt, the U.S. government must send interest payments abroad, which adds to the incomes of residents of other countries rather than to the incomes of U.S. residents. In addition, this increasing reliance on foreign and international investors to finance the deficits of the U.S. government presents potential risk to the U.S. economy, especially since the U.S. gross national saving rate is low by U.S. historical standards.
So about 27% of our total National Debt is owed to foreigners. Read on...
Another trend we have observed is the decline in annual budget deficits. As widely reported last month, the fiscal year 2007 budget deficit of $163 billion represents the third consecutive decline in budget deficits, down from last year’s deficit of $248 billion. Certainly lower short-term deficits are better than higher short-term deficits. However, our nation’s real challenge is not short-term deficits, rather it’s the U.S. government’s impending longer-term structural deficits and related debt burdens. Indeed, what we call the longer-term fiscal challenge is not in the distant future. The first of the baby boomers become eligible for early retirement under Social Security on January 1, 2008—only two months from now— and for Medicare benefits just 3 years later.
Congress is the problem.