A Tsunami of Red Ink

UNDERSTANDING THE NATIONAL DEBT A tsunami-of red ink 14 2010 (estimated): $13.79 trillion- $9.30 trillion held by the public $4,49 trillion held by federal government accounts 12 10 The national debt At end of fiscal year (Sept. 30), scale in trillions of dollars Debt held by the public Debt held by federal government accounts 1940 "45 "50 "55 "60 "65 "70 "75 '80 "85 "90 "95 2000 '05 10 ESTIMATES Debt as a percentage of GDP Publicly held debt By fiscal year Estimated ownership of U.S. Treasury securities at end of each calendar year, in trillions EST. 2010 (estimated): 94.3% 63.6% held by the public 30.7% held by federal government accounts Foreign investors (+256% since 2000) U.S. investors (+83% since 2000) 100% 2000 $1.0 $1.9 A HIGHER INTEREST RATES 2009 $3.6 $3.4 75 Interest on the debt 2009: 50-hr By fiscal year, scale in billions $383.1 billion $400 25 200 1940 1950 1960 1970 1980 1990 2000 2010 1988 90 2000 "05 Largest foreign holders of U.S. debt A HIGHER TAXES CHINA $877.5 billion ($60.3 billion) Ownership of U.S. Treasury securities as of Feb. 28, 2010 (with amount held at end of 2000, if available) CANADA $67.1 billion ($14.2 billion) JAPAN $768.5 billion BRITAIN A INFLATION $231.7 billion ($50.2 billion) ($317.7 billion) BRAZIL RUSSIA $120.2 billion S170.8 SWITZERLAND- billion $81.8 billion ($16.4 billion) A IMPACT ON FOREIGN AFFAIRS LUXEMBOURG $77.9 billion ($29.6 billion*) A FLEXIBILITY IN TIME OF CRISIS HONG KONG $152.4 billion ($38.6 billion) CARIBBEAN BANKING CENTERS $144.5 billion ($37.4 billion) OIL EXPORTERS $218.8 billion ($47.7 billion) Includes Bahamas, Bermuda, Cayman Islands, Netherlands Antilles, Panama and, in 2010, British Virgin Islands Includes Ecuador, Venezuela. Indonesia, Bahrain, Iran, Iraq. Kuwait, Oman, Qatar, Saudi Arabia. UAE, Algeria, Gabon, Libya and Nigeria TAIWAN $121.4 billion ($33.4 billion) *2000 total includes Treasury securities held by Belglum. Debt around the world National debt as a percentage of GDP for selected countries (with world rank); all figures are 2009 estimates JAPAN (2nd) GREECE (8th) 108% FRANCE GERMANY (15th) BRITAIN (22nd) MEXICO (70th) 38% ZIMBABWE CANADA U.S.** (Ist) (18th) (20th) (42nd) 304% 192% 80% 77% 72% 69% 53% ** Includes publicly held debt only. If intragovernmental debt is included, the U.S. percentage increases to 83 percent. SOURCES: White House Office of Management and Budget, Department of the Treasury, CIA World Factbook