Friday, October 4, 2019

Intragovernmental Holdings reaches $6 trillion

The category called Intragovernmental Holdings, which I think is mostly composed of Treasury debt to the Social Security Administration, reached $6 trillion yesterday (10/3/19).  It is real debt, since the SS taxes should only go to SS beneficiaries, but the Treasury took the funds and spent them and left an IOU.

When did it hit $5 trillion, and when was it $3 trillion?  I first hit $5 trillion on 1/28/14, then it dropped back a little.  It has been consistently above $5 trillion ever since 9/22/14.  So it took about 5 years for it to add a trillion.

It first hit $4 trillion on 10/1/07.  It hit $3 trillion on 6/30/04.

I think it will peak at some point and start to go down but I don't know what the peak amount will be or when that will happen.  A wild guess - maybe at about $7 trillion in another 5 years, which is 9/30/2024.

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