Who is holding USA’s Debt?
February 28th, 2010 | Published in Financial Knowledge, Singapore, U.S.A.
United States of America’s debt, also called the national debt or the public debt, represents the money that the U.S. government owes to the owners of debt instruments that are issued by the U.S. treasury. There are several types of debt instruments issued by the U.S. Department of the Treasury. All of these items are collectively called treasuries.
Since the 18th century, the country has carried debt that has fluctuated with the political and social climate. In 1860, U.S.A.’s debt was $65 million. The Civil War brought about a major spike in the debt. World War I and World War II also brought about major rises in the debt. The latest debt numbers have put it at its steepest numbers since the debt level spiked during World War II.
U.S.A.’s debt, as owed to foreign nations, has been rising steadily over the years. The gross debt was about US$10 trillion in 1940. In 1950, it had risen to about US$18 trillion. After falling for a few decades, it began rising again in the late 1980s. In 2009, U.S.A.’s debt was again up to US$18 trillion. It is projected to continue to rise over the next few years. By 2011, it is projected to be about US$20 trillion. The projected amount of American debt in the next few years equals 100 percent of the U.S. GDP.