Foreign Debts

In a FAQ released in 2004 by the United States Department of the Treasury, national debt (or Federal Debt) are bonds, securities and liabilities sold to finance the government's spending. There are two generally accepted definitions of national debt; one owned by the public and one by government accounts.

Debt held by the public includes debts held by individuals, corporations, individual states, financial institutions and foreign governments. This debt represents the money the government has absorbed from the public to finance itself.

Debt held by government accounts are debts held by the government itself in the form of trust funds such as Social Security and Medicare.

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