US budget deficit: Where does the money come from?
Regarding the last fiscal year, the Federal Government's deficit rose to USD 2.772 tr.
Having said that, it is the second worse fiscal result (the first one was in 2020) in the US history.
Related Dataset:
Fiscal - USA - Department of Treasury - Public Debt and Federal Fiscal Result
So, how do policy makers close the gap between income and spending?
In a nutshell, the Federal Government asks for the economic agents to lend them money. Since Q4-2019, the total public debt has increased to USD 28.5tr (+USD 5.3 tr). As GDP percentage, the debt burden has risen to 125.4% (+17.3%) during the same period. Is that a problem? No as long as investors keep on lending enough money.
Related Dataset:
Fiscal - USA - BFS - Public Debt
Noteworthy: Two ratios to be taken into account
The proportion of total public debt held by the public over the whole public debt has performing smoothly since 2021 onwards (excluding pandemic-related raise during Q2-2020). Unlike this, there's been an interesting, sharp change among debt holders. In fact, during Q1-2019 per USD 100 owed to foreign investors, the Federal Government owed USD 37 to Federal Reserve Banks. The last printing shows that ratio increased over USD 78. Of course, the ratio is in line with the Fed's balance sheet dynamics.
