Biggest Holders of US Government Debt !!!

As the US government spends an unprecedented amount of money to fix the nation's economy, there is an equally great need to raise the cash to pay for it. This is accomplished through borrowing, whereby ‘US Treasury’ sells Treasury securities of varying maturity.

For investors, the government bills, notes and bonds are considered a safe financial product because they have a guaranteed rate of return, based on faith in future US tax revenues. The government has been partially funding operations via Treasury securities for decades. This borrowing adds to the national debt, which is now above $11 trillion and is rising every day. Much of that debt is held by private sector, but about 40 percent is held by public entities, including parts of the government. Here's who owns the most.

1. Federal Reserve & Intragovernmental Holdings- $4.806 trillion
2. Mutual Funds- $769.1 billion
3. China- $739.6 billion
4. Japan- $634.8 billion
5. State & Local Governments- $522.7 billion
6. Pension Funds- $456.4 billion
7. Other Investors- $413.2 billion
8. Oil Exporters- $186.3 billion
9. Caribbean Banking Centres- $176.6 billion
10. Brazil- $133.5 billion
11. Insurance Companies- $126.4 billion
12. United Kingdom- $ 124.2billion
13. Russia- $119.3billion
14. Luxembourg -$87.2billion
15. US Depository Institutions- $107.3billion

I believe even if 5% holdings of all these entities enters the stock market of this world the volatility of the market will try to smoothen up and it would bring comfort and confidence to the financial market. Every entity being futuristic is still ready to hold and borrow more and more debt from an economy which is said to be the sole cause for this recession.

Ref.- CNBC

Credits - Manik Gursahani