Number: RL33723
Title: Growth in Foreign Holdings of Federal Debt
Authors: Philip D. Winters, Government and Finance Division 
Abstract: The federal budget's return to persistent deficits after fiscal year 2001 increased and continues to increase the amount of federal government debt sold to the public. The sale of U.S. Treasury-issued debt to the public provides the government with the cash it needs to cover the gap between its income and its spending. The Treasury Bulletin (published quarterly) provides data on the amount of federal debt held by different categories of holders. The categories of holders include, among others, depository institutions, individuals, pension funds, insurance companies, state and local governments, and foreign governments and international institutions. For this report, the holdings of federal debt by the public are divided into just two categories, domestic private holdings, and foreign and international holdings (hereafter referred to as foreign holdings). The rest of this report documents the growth in foreign holdings of federal debt over the last 20 years and the potential consequences of the changes.
Pages: 7
Date: November 13, 2006