Which I should mention if Congress wouldn't have treated SS as a slush fund it would be fully funded.
1. Social Security Trust Funds
U.S. debt holdings: $2.67 trillion
The largest portion of U.S. Intergovernmental Securities and the
biggest holder of U.S. debt is the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund, together comprising the Social Security Trust Fund or OASDI. When tax revenues for the Social Security exceed current expenses, the funds are legally obligated to invest in interest-bearing Federal securities guaranteed by the government, such as bonds from the U.S. Treasury.
According to the Treasury, as of December 2011, the Federal Old-Age and Survivors Insurance Trust Fund held $2.54 trillion of U.S. debt, while the Federal Disability Insurance Trust Fund held $153.9 billion, together more than doubling the amount of debt held by the Federal Reserve or China. Although the Social Security Trust Fund commands huge debt holdings in comparison to others, the amount of debt has held relatively stable, increasing by only $173 billion - approximately 7% - since 2009.
2. U.S. Federal Reserve
U.S. debt holdings: $1.659 trillion
One of the biggest holders of U.S. government debt is actually within the United States itself. The Federal Reserve system of banks reports in its most recent balance sheet holdings of $1.659 trillion in U.S. Treasury debt as of May 24, 2012.
The Fed’s balance sheet has expanded considerably since the financial crisis, as the Central Bank looked to stimulate consumer demand and jumpstart the economy by keeping interest rates low and adding liquidity to the market through its purchase of securities, including U.S. Government debt.
U.S. debt holdings: $1.169 trillion
The largest foreign holder of US Treasury securities, China posesses $1.169 trillion in American debt, although it is down from all time highs of $1.314 trillion in July 2011. For more on China and currency.
Edited by Noah.Dreams, 28 June 2012 - 03:26 PM.