Who owns the US debt and how Bitcoin can fix it? \ stacker news ~bitcoin

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Who owns the US debt and how Bitcoin can fix it?

1136 sats \ 21 comments \ @eespn 20 Jul bitcoin

Doing a quick query

Total Foreign-Owned Debt

As of January 2023, foreign countries own approximately $7.4 trillion in US Treasury securities, which represents around 24% of the total US debt, being Japan and China the top 2 with over 20% of that pie

Domestic Holders

The remaining 76% of the US debt is held by domestic entities, including:

Federal Reserve: $2.3 trillion
Social Security Trust Funds: $2.8 trillion
Medicare Trust Funds: $1.1 trillion
Other government accounts: $1.4 trillion
Private investors (individuals, banks, pension funds, etc.): $10.4 trillion

How much is that debt?

The gross federal debt surpassed $34 trillion, which includes both debt held by the public, approximately $26.9 trillion, and debt held by federal trust funds and other government accounts, which is around $7.1 trillion.

How fast is growing?

It has been growing rapidly, increasing by $1 trillion every 100 days since June 2023.

How bad it is?

We can use the financial KPI ’debt to GDP ' ratio, currently is 99%!, this is the highest since WWII, so we can conclude it is really bad. And the printing will continue non stop , more over on an election year, hence, the debt will continue to growth steady.

How does Bitcoin fix this?

Going back to a model like the gold standard but with Bitcoin, it has been hinted already and proposed by many, one of the presidential candidates seems to be considering it, a light at the end of the tunnel.

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24 sats \ 1 reply \ @random_ 20 Jul

EXPLAIN WHY LUXEMBOURG HOLDS >4% OF FOREIGN OWNED US DEBT.

14 sats \ 0 replies \ @SwearyDoctor 21 Jul

it's held IN Luxemburg, not BY Luxemburg. Luxemburg has long been a tax haven within the EU. EU citizens can open accounts in any EU country, with certain tax benefits. So people with high net worth have Luxemburg accounts.

14 sats \ 0 replies \ @MarsIronPI 21 Jul

Going back to a model like the gold standard but with Bitcoin, it has been hinted already and proposed by many, one of the presidential candidates seems to be considering it, a light at the end of the tunnel.

Uh, how would this solve the debt that we have now? IMO the current U.S. debt will never be paid off. At this point the only reason that I can think of to loan to the U.S. is to claim a casus belli when it’s not paid back.

14 sats \ 1 reply \ @SatsMate 21 Jul

I would love an infographic of this laid out. Does visual capitalist have something laid out on this?

I had no idea 76% of our debt, is owned by us (U.S. entities, corps and citizens). Damn!!!

0 sats \ 0 replies \ @Bell_curve 21 Jul

You sound disappointed ☹️ lol 😂

14 sats \ 3 replies \ @Satosora 20 Jul

The problem with this debt is that the USA doesnt WANT to pay it off. Its in their interest to keep debt on the books and keep all the other countries on this debt roll.

34 sats \ 2 replies \ @JesseJames 21 Jul

You meant WILL NOT... lol

56 sats \ 1 reply \ @Satosora 21 Jul

Also, the USA will not pay it off. Everyone knows that, they will just keep shifting it and kicking down the can for the next generation to figure out.

14 sats \ 0 replies \ @thecommoner 21 Jul

I think it is more like.... "CAN NOT" pay it off....

Oh wait...they can just mint that "TRILLION DOLLAR COIN" out of PLATINUM because it sounds really expensive and then move it from column A to B on their nifty little spreadsheet and Presto....problem solved!

Sorry - just being a little snit at the moment

14 sats \ 1 reply \ @0xIlmari 20 Jul

You think $34T is a lot? Go look up US "unfunded liabilities". Make sure you're sitting down.

While not technically considered "debt" (the gov't can technically reneg on these), these are promised future obligations for which they don't have secured funding (yet).

0 sats \ 0 replies \ @Bell_curve 21 Jul

Bingo

14 sats \ 0 replies \ @BlokchainB 20 Jul

Ponzi to the max!

14 sats \ 0 replies \ @zuspotirko 20 Jul

federal debt surpassed $34 trillion

increasing by $1 trillion every 100 days

Some quick napkin math - that's like 3t-4t per year. More than 10% increase yoy.

10% is so much more than the alleged inflation goal of 2%. I can't imagine how even the most stubborn advocate of "debt != prices of goods and services"- guy can square these facts together. Even debt to gdp won't hold up here: gdp had the best year ever with 5%.

14 sats \ 0 replies \ @Akg10s33 20 Jul

inevitably they are going to have to do it... they are going to have to find a solution to this printing of money without control and without any support... Bitcoin and the Cryptoeconomy is going to be a perfect solution and in that way, if we think about it, it would also end up strengthening and secure the economy of one of the powers in the world today... and hopefully that candidate who has a positive point of view towards the crypto economy wins or if not, the one who does so knows and understands that it is the definitive moment to use Bitcoin as the most correct and lasting solution.

14 sats \ 0 replies \ @Msd0457890 20 Jul

It would be an excellent thing, the United States economy is quite strong and that would boost it.

0 sats \ 0 replies \ @Coinsreporter 21 Jul

When fiat dies, Bitcoin will automatically fix this!

0 sats \ 0 replies \ @IamSINGLE 21 Jul

US debt increasing by 1 trillion every 100 days seems like a black hole! Bitcoin is surely one answer but crook politics wouldn't let the source of money go away from them. I highly doubt that any government would establish a Bitcoin standard until the fiat lie is completely drowned

0 sats \ 0 replies \ @Bell_curve 21 Jul

It’s true debt will never be paid off but we shouldn’t worry about debt or deficits. The main focus should be on government spending, how can we cut current and future spending.

Current spending for the current fiscal year is almost 7 trillion. COVID created a new baseline.

Medicare and Medicaid should be separate items instead of combined. The reason is one is an entitlement, the other is a handout. Easier to eliminate handout than entitlement

0 sats \ 2 replies \ @Bell_curve 20 Jul

The three largest expenses are Medicare, Medicaid and Social Security.

Privatization of all three programs will save money

114 sats \ 1 reply \ @eespn OP 20 Jul

I used to think similarly, but the more I study the case the more I concluded that doing that will make it worst medium to long term.

I think that the root of the problem with medicare and medicaid is that the medical attention and the medicines are private, when the health system is private, sickness is a business and therefore the incentive is to treat you and therefore milk you, not to cure you and thus, most protocols are created in that line, is all business, doctors are trained in medicine school that way, thus, they do not know better until they are seniors and understand better how the cookie crumbles...

If all the health system, from the pharmaceutical conglomerate to the last hospital was state owned, the business of the state to reduce cost will be to heal people. Very well spent taxes...

I had that epiphany while working few months in Spain, noticed that most of their health system is public and worked well at that time, doctors were quite different than in USA, they will talk about stress control, diet, exercise, avoid prescribing pills unless strictly necessary... It was refreshing and weird at the same time... Yet, medicines are expensive, not as much as in USA, which are unreal, but neither that cheap.

0 sats \ 0 replies \ @Bell_curve 21 Jul

Medicare and Medicaid reimbursements to doctors and hospitals are rationed and cost contained.

Why are geriatric doctors understaffed and underpaid? Government reimbursements are low.

A lot of doctors are moving toward a cash only policy because there is less paperwork and fewer restrictions. They can focus on patient care rather than wait for insurance reimbursements.

The main problem in healthcare in USA and most of the world is over reliance on third party payment.

Look at areas where there is no insurance: plastic surgery, LASIK surgery and fertility treatments such as IVF. These specialists are the highest paid in general.

American healthcare was cheaper and better before 1966. When did Medicare and Medicaid start? Answer should be obvious.