NOV. 26, ‘25 // Who are the lenders? People are sometimes surprised to learn that most of the debt is owned by Americans. Included among them are: • U.S. banks – U.S. banks are required to put part of their money into secure investments. As part of this requirement they buy gov’t bonds. • A government bond is a note stating that the U.S. has borrowed money from you. A bond is considered one of the safest investments. The government will redeem its debt with interest. • Pension funds – Citizens give a monthly sum to social security, in order to have a safe income in their old age. The government borrows this money to pay for their expenses, with the plan to fund the Social Security of the older generation, with the money that the younger generation puts into the same program. • Regular People – The government sells savings bonds to people thereby raising much needed money. Savings bonds are considered very secure and are remitted with interest. • Foreign countries like Japan and China own only one third of the debt. What are the expenses of the U.S. Government? • Programs and services, such as national defense, infrastructure (bridges, roads, pipes etc.) and social safety nets. (social services, social security, health care) • Tax cuts – they cut into government revenue, forcing the United States to borrow more, this leading to bigger debts. • Interest payments on the debt are a 134
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