Government Debt

National debt is the total amount of money owed by the government. According to the US treasury department, the national debt of the year 1791was just $75 million dollars, but as for today, it rises by that amount every dozen hours. Many of us might wonder to whom do we owe all this money? Or who owns the debt? The government spends money largely on the Federal Reserve and government accounts, Foreign and international, private pension funds, mutual funds, State and local governments, Commercial banks and credit unions, State and local government pension funds, US Savings bonds, and last but not least Insurance companies. Many politicians goal is to reduce the national debt. However, it is very difficult to do so. Each year when politicians shout out that the “deficit is down”, this statement only mean that we are adding less to the national debt not reducing the debt.