As of September 2019, here are the top foreign debt holders of the United States Government Debt, per the Unites States Treasury Department:
- China (Mainland)
- United Kingdom
Reminder: As the United States Federal Deficit rises, the sale of these US Government debt instruments are used to “true up” the deficit. This process expands the money supply, which is inflation. It also should be noted that the largest domestic purchaser of US Government debt is the Federal Reserve. It does this by engaging in repos, buying debt from the banks’ balance sheets, in exchange for cash.