The Government Finances the Deficit by Borrowing Directly from the Private

The government finances the deficit by borrowing directly from the private sector,the banking system,government agencies,and foreign investors.
Half of the U.S.debt is held by the U.S.government itself; 23 percent by Social Security,22 percent by federal agencies,and 5 percent by the Federal Reserve.The private sector in the United States holds only 17 percent of the debt,and foreigners own about 28 percent.