The national debt refers to the amount of money owed by a government to its creditors, which can include private individuals, institutions such as banks and pension funds, and foreign governments. ### The national debt is comprised of: ![[US_National_Debt_Overview.jpg]] 1. **Public debt**: This refers to the amount of money owed by the federal government to individuals, institutions, and foreign governments through the sale of Treasury securities such as Treasury bills, notes, and bonds. 2. **Intragovernmental debt**: This is the debt owed by the federal government to itself, such as the money borrowed from the Social Security Trust Fund to pay for other government programs. 3. **State and local government debt**: This is the amount of money owed by state and local governments for various purposes such as infrastructure, education, and healthcare. 4. **Unfunded liabilities**: This refers to the amount of money owed by the federal government for entitlement programs such as Social Security, Medicare, and Medicaid that are not fully funded by current revenues. 5. **Other liabilities**: This includes other types of debt owed by the federal government such as loans, guarantees, and other obligations. ## Breakout of public debt The largest chunk of the national debt overall is the domestic investors -- your average American bondholders, institutional funds, and the Fed. ![[US_National_Debt_Overview 1.jpg]]