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Ownership of the Federal Debt
Total Federal Debt $4.9 Trillion, September 1995
* The federal government owns part of the debt itself, either
in trust funds or by the Federal Reserve. Medicare and Social Security are financed
through trust funds, receiving funding directly from payroll taxes designed
to support them. When these trust funds run a surplus, the federal government
is required to invest the money in federal securities, this insuring that the
federal government will own much of the debt itself. The debt held by the Federal
Reserve is in the form of a large number of Treasury Securities. The Fed buys
and sells its securities in order to increase or decrease the amount of money
in circulation so as to affect the prevailing interest rate.
** This includes savings and loans, credit unions, non-profits, mutual
savings banks, corporate pension funds, and dealers and brokers
[source: Treasury Bulletin of September 1995, put out by the Treasury Department]
© 1996, The Feminist Majority Foundation and New Media Publishing
Inc.
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