Biggest Holders of US Government Debt

As the U.S. government spends an unprecedented amount of money to fix the economy, there is an equally great need to raise the cash to pay for it. This is accomplished through borrowing, whereby Uncle Sam sells Treasury securities of varying maturity. For investors, government bills, notes and bonds are considered safe because they have a guaranteed rate of return, based on faith in future U.S. tax revenues. The government has been partially funding operations via Treasury securities for decades.  This borrowing adds to the national debt, which has recently surpassed $15 trillion and is rising every second. The amount of debt is quickly approaching the federal debt ceiling, a legal limit to borrowing that currently stands at  $ 16.4 trillion.  Much of that debt is held by private sector, but about 40 percent is held by public entities, including parts of the government. Here's who owns the most. Foreign countries listed include private and public investors, according to monthly U.S. Treasury data.

15. Switzerland: U.S. debt holdings: $113.9 billion

14. Taiwan: U.S. debt holdings: $149.6 billion

13. Caribbean Banking Centers: U.S. debt holdings: $185.3 billion

12. Brazil: U.S. debt holdings: $206.4 billion

11. Oil Exporters: U.S. debt holdings: $232 billion

10. Insurance Companies: U.S. debt holdings: $250.1 billion

9. Depository Institutions: U.S. debt holdings: $284.5 billion

8. The United Kingdom: U.S. debt holdings: $429.4 billion

7. State and Local Governments: U.S. debt holdings: $484.4 billion

6. Mutual Funds: U.S. debt holdings: $653.5 billion

5. Pension Funds: U.S. debt holdings: $842.2 billion

4. Japan: U.S. debt holdings: $1.038 trillion

3. Other Investors/Savings Bonds: U.S. debt holdings $1.107 trillion

2. China: U.S. debt holdings: $1.132 trillion

1. Federal Reserve and Intragovernmental Holdings: U.S. debt holdings: $6.328 trillion

While China is the largest foreign holder of U.S. debt, Americans are still the holders of the most IOUs.