Understanding USA's Financials via US Financial Stats as of Q4 2024:
- Debt Held by the Public: $26.5 trillion
debt owned by outside entities like individual investors, corporations, state or local governments, and foreign governments. This is financed through U.S. Treasury securities and contributes to marketable debt. Intragovernmental Debt: $12.1 trillion
debt the government owes itself. This portion primarily includes funds borrowed from Social Security, Medicare, and other federal trust funds.
Medicare: $1 trillion Social Security: $1.4 trillion Medicaid: $589 billion Defense: $994 billion Interest on National Debt: $644 billion (variable depending on Federal debt & interest rate) Veterans’ Benefits: $160 billion
- Consumer Spending: 68% of GDP.
includes expenditures on goods and services by households, covering everything from food and housing to healthcare and entertainment - Business Investment: 18% of GDP
includes investments in structures, equipment, and intellectual property, such as software and research - Government Spending: 17% of GDP
includes federal, state, and local government expenditures on various programs, infrastructure, defense, and other public services - Net Exports (Exports minus Imports): TBD Negative
The U.S. typically runs a trade deficit, meaning imports exceed exports. This subtracts from GDP, but it varies depending on the trade balance each quarter.
- Individual Income Taxes: $2.6 trillion
- Payroll Taxes: $1.5 trillion
- Corporate/Business Income Taxes: $430 billion
- Excise, Estate, and Gift Taxes, and Miscellaneous: Remaining amount
USA Government Assets: ~$4.9 Trillion
Cash and Monetary Assets: ~$475 billion
This includes the government's available cash reserves.Accounts Receivable: ~$401 billion
Money owed to the government from various sources, including tax receivables.Loans Receivable: ~$1.7 trillion
Primarily consists of student loans owed to the government.Physical Assets: ~$1.2 trillion
Includes buildings, equipment, and facilities, mainly held by the Department of Defense (DOD), which is the largest holder of government physical assets.
USA Government Liabilities: Total ~$34.8 Trillion
Federal Debt Held by the Public: ~$22.3 trillion
Includes debt issued by the Treasury to the public (e.g., Treasury bonds, bills, and notes).Federal Employee and Veteran Benefits Payable: ~$10.2 trillion
Represents future obligations owed to federal employees and veterans, primarily pension liabilities and medical benefits.Social Insurance Programs (like Social Security and Medicare):
These programs carry substantial unfunded future liabilities as they are structured with promises to pay benefits to future generations, but without corresponding current funding.
- Direct Individual Holdings: ~15%
These are stocks held directly by individual investors through brokerage accounts.
- Retirement Accounts (401(k)s, IRAs, etc.): ~23%
- Includes stock holdings in retirement accounts, where individual investors have indirect equity stakes through funds or other retirement investments.
2. Institutional Investors (~35%)
- Mutual Funds: ~20%
- A large portion of institutional holdings in the U.S. market, mutual funds pool investor money to buy diversified stocks and bonds.
- Pension Funds: ~8%
- State, local, and corporate pension funds that invest in the U.S. stock market for the benefit of future retirees.
- Insurance Companies: ~5%
- Insurance firms often hold equities as part of their investment portfolios to meet future payout obligations.
- Hedge Funds and Other Investment Firms: ~2%
- Hedge funds and specialized investment firms contribute to the market cap but represent a smaller institutional segment.
3. Foreign Investors (~20%)
- Sovereign Wealth Funds and Foreign Governments: ~8%
- Various countries’ sovereign wealth funds and government-related entities invest in U.S. equities for strategic and diversification purposes.
- Foreign Private and Institutional Investors: ~12%
- Includes foreign banks, corporations, and individual investors outside the U.S. that invest in American equities.
4. Government Entities and Public Sector (~7%)
- Federal Government and Trust Funds: ~2%
- The U.S. government, through certain trust funds and public investment accounts, holds a small portion of equities.
- State and Local Government Pensions: ~5%
- Pensions managed by state and local governments also invest in equities to meet future pension obligations for public employees.
- Pensions managed by state and local governments also invest in equities to meet future pension obligations for public employees.
- Equities & Mutual Funds: Approximately $33 trillion, representing a significant portion of the wealth for higher-income and older generations.
- Real Estate: Around $41 trillion, with the largest portion owned by older generations, particularly Baby Boomers, who also hold the most wealth in financial assets.
- Pensions: Estimated at $30 trillion, providing retirement security.
- Private Businesses and Durable Assets: These assets add up to around $50 trillion, heavily skewed towards high-net-worth individuals and families.
- Mortgage Debt: This is the largest category, accounting for about $12 trillion. This includes home loans for residential properties.
- Student Loan Debt: At around $1.8 trillion, student loans represent a significant portion of non-mortgage debt.
- Credit Card Debt: Credit card debt is approximately $1 trillion, showing a major increase in consumer borrowing, especially with rising interest rates.
- Auto Loans: Outstanding car loans total around $1.5 trillion.
- Other Consumer Debt: This category includes personal loans and other types of borrowing, which collectively add up to about $1 trillion.