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Who are the lenders? As of last June 2007 the biggest holder of Treasury debt was the U.S. government itself, with about 52 percent of the total $ 8.5 trillion in paper that’s out there.
Most of the government’s holdings are massive savings accounts for programs like Social Security and Medicare. Just as you may prefer to keep your Individual Retirement Account in the safe Treasury bonds, the folks who manage the Social Security Trust Fund are looking for a secure investment, too.

That’s leaves a little over $ 4 trillion in public hands. The biggest chunk (about 25 percent of the $ 8.5 trillion total) is held by foreign governments. Japan tops the list (with $ 644 billion), followed by China ($ 350 billion), United Kingdom ($ 239 billion) and oil exporting countries ($ 100 billion).

So this was during Bush II term, US banks are investing in this debt, this brings in Billions of dollars for these banks, why would they want the debt to be paid off? They don’t, follow the money!

9 Thoughts on Who makes the money on buying our national debt?
  1. Reply
    October 31, 2011 at 10:36 pm

    house repubs cut $ 352 million. this is how they have improved the job market since jan.

  2. Reply
    Gorkbark Porkduke Gefunken Fubar
    October 31, 2011 at 11:25 pm

    That’s right, over 50% of the US debt is held by the Treasury, and when the dollar collapses the Treasury will deflate like a pricked balloon, and any assets held in the form of dollars will evaporate almost instantly.

    That’s why I am bailing out of my mutual fund IRAs and shifting the money into physical silver. The goddammed US government is destroying this country.

  3. Reply
    Thoughtful Monkey
    October 31, 2011 at 11:27 pm

    Your average Conservative has no idea how the bond auction and buyback process works.

    Gork – good luck with that. You sound like kind of a prick so in your case I’ll recommend you plan on holding Silver until at least July. You don’t get the real advice.

  4. Reply
    Donald Trump
    October 31, 2011 at 11:52 pm


  5. Reply
    November 1, 2011 at 12:10 am

    that money is gone. it exist in the question above, but realistically.excessive administrative cost of government equal medicare and food stamps combined.

  6. Reply
    November 1, 2011 at 12:51 am

    That’s right … money doesn’t just disappear into thin air … someone always benefits … shareholders, most probably American, are just rubbing their little hands together … !

  7. Reply
    November 1, 2011 at 1:46 am

    Why don’t you just answer your own question instead of giving the rest of us tired head trying to figure out what you want to hear?

  8. Reply
    Naughty Angel
    November 1, 2011 at 1:53 am

    the chinese

  9. Reply
    Douglas L
    November 1, 2011 at 2:05 am

    I would not loan money to the US government. The interest rate is pays it next to nothing. What is worse is the risk of inflation or hyper-inflation that can make the value of US bonds disappear. I have about $ 60 in US cash and a bit in stocks. The rest of my wealth is safe and outside of the USA.
    China now realizes the out the US money it has are just little pieces of paper with not much backing it up. So what is China doing? They are buying gold which has real value unlike those little pieces of paper that Uncle Sam is printing 24/7. They are investing in mines all over the world. They are trying desperately to spend those little pieces of paper while people will trade them for real assets.
    To answer your question ” Who makes the money on buying our national debt?” when inflation and currency rate changes are factored in, then no one makes money on the US national debt.

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