US Government Debt Funding

The American Revolutionary War (1775-1783) produced a $43 million debt. Congress used Tariffs, fees and land sales to generate revenue to pay off this loan. 

In 1789, the U.S. Treasury Department was created to help the country borrow money and manage debt.  Haym Salomon played an important role in financing the Revolution. When the war began, Salomon was operating as a financial broker in New York City.

70% of the national debt is owned by domestic government, institutions investors and the Federal Reserve. Under 30% is owned by foreign entities.

$6.5 trillion in US Treasury Holdings is owned by foreign countries. China owns $1.12 trillion and Japan owns $1.08 trillion as of March 2019.

https://ticdata.treasury.gov/Publish/mfh.txt

If China reduces its holdings, the US may need to raise an additional $1 trillion.

The 30 Year Treasury Note pays 2.7% per year. The 10 Year Treasury Note pays 2.3%. The 2 Year Treasury Bill pays 2.1%.

The US Stock Market pays 7.7% average return since 2015.

2018  -4.38%

2017 21.83%

2016 11.96%

2015 1.38%

Average 7.7%

https://www.marketwatch.com/story/10-year-treasury-yield-tumbles-to-18-month-low-on-trade-jitters-global-growth-concerns-2019-05-23

Norb Leahy, Dunwoody GA Tea Party Leader