US borrowing $1 trillion a year in spite of low unemployment and no recession ?

SUMMARY:

Who is lending us money?

Over the 12 months,

ending June 2019, 

the U.S. government 

borrowed $828 billion. 

Foreign bought $411 billion.

The FED sold $265 billion.

US government funds

bought $106 billion. 

American institutions 

and individuals 

bought $576 billion, 

bringing their holdings

to $7.46 trillion. 

DETAILS:

Much of the US debt is held

by foreign investors. 

As of June 2019,

all foreign investors 

held $6.64 trillion 

in US Treasury bonds 

and bills, up +$411 billion

from June 2018.

The $6.64 trillion 

held by foreign investors 

is 30% of total Treasury debt.

About $6 trillion of

US Treasury securities 

are held by the

Social Security Trust Fund 

and pension funds for 

government employees 

and military personnel. 

This “debt held internally” 

is real debt -- it belongs 

to the beneficiaries 

of those funds.

Japan holds $1.12 trillion

of U.S. Treasury debt.

China had been 

our largest lender,

but with $1.11 trillion, 

is now number two.

behind Japan.

No country comes close 

to Japan and China:

    UK: $341 billion 

    Brazil: $312 billion

    Ireland: $262 billion

    Switzerland: $233 billion

    Luxembourg: $231 billion

    Cayman Islands: $227 billion

    Hong Kong: $216 billion

    Belgium: $203 billion

    Saudi Arabia: $180 billion

The Fed sold $265 billion 

in Treasury securities 

over the 12 months, 

reducing its holdings 

to $2.1 trillion at the 

end of June 2019.

Other US entities 

bought the 

$265 billion 

the Fed sold,

and also bought 

$417 billion of new 

Treasury bonds / bills 

that foreigners did not buy, 

for a total of $682 billion.