U.s. Government Debt | featured news

The United States has not seen a balanced budget since 2001. Although private banks in the U.S. hold the majority of the country’s debt, over 52% according to MSNBC, the Treasury Department and the Federal Reserve Board estimate that foreign governments hold 4.4 trillion of the country’s $14 trillion debt in Treasury securities.

China boosted its holdings of U.S. Treasurys to its largest position in nearly a year during October as it remained the largest foreign holder of U.S. government debt, the Treasury Department said.

Increase is much larger than previously planned, but is necessary to avoid defaulting on debts next year, House majority leader says.

Federal Reserve Chairman Ben Bernanke on Tuesday urged bold action action to pull the economy out of a deepening slump, even if it means a surge in U.S. government debt.