| By :
Molly Wider
Ever wonder where all the money goes? We get paid and it seems within days, we have empty pockets. So, where does all the money go? Well, that's a question that only you can answer. It will require creating a list of all incoming and outgoing monies and doing a bit of detailed balancing. Don't forget to include the people who owe you money. Many countries have this same issue to deal with. The EU has been making headlines lately for this very reason. It seems one of the wealthiest countries in the world has more money problems than any other. Dubai has recently come under massive public humiliation after spending years boasting such luxuries as man-made palm shaped islands (that are rumoured to be sinking) as well as the world's tallest skyscraper (that recently had faulty elevator malfunction). Countries a little closer to home also have the same problem. The United States spends an unprecedented amount of money trying to fix the nation's economy. Ironically the cash required to accomplish this needs to be raised. If you've ever heard 'it takes money to make money', this is a prime example. The United States, a.k.a. Uncle Sam, raises its money by selling Treasury securities of varying maturity. This, of course, is the most simplified (of the simplified) version of where the money to run the nation comes from. The United States recently did their own detailed balancing of sorts to find out where they money has gone and the results are a little surprising. These are the top five culprits accompanied by a few honourable mentions. To the surprise of many, the largest holder of the United States' debt is the US themselves. The Federal Reserve and the US Intragovernmental Holdings account for an amazing $4.8 trillion in US Treasury debt. Around ten years ago, this debt was only $2.5 trillion. The second largest debt holders are Mutual Funds. This group of investments manages about $769 billion of the US Treasury securities. The third largest is China owing a phenomenal $739 billion as of January 2009. This does not include Hong Kong's additional $71 billion debt. Japan comes in fourth as a major US trade partner owing $634 billion. Fifth place is held by state and local governments who have more than half a trillion dollars invested in American debt. A few honourable mentions go to Pension Funds, both private and local government pension funds combined are worth a $456 billion debt. Investors, oil exporters, Caribbean bank centres, depository institutions, insurance companies and a combination of several additional countries make up the additional debt. Even though logic tells us our personal debt will never reach such heights, it's still important to keep track of our spending and our lending. If you find yourself wondering where all the money has gone, consider debt consolidation by inquiring about a private secured loan. It may help to ease your debt and manage your money more effectively.
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