This link did go to a page (http://frwebgate1.access.gpo.gov) that was very hard to find that had a graph of the natanal debt.

Aparently they hid it again

You can try finding it again at,
the government printing office or their index Here
But these are the last numbers I found at
the GPO with a copy of the main body below

United States General Accounting Office Washington, D.C. 20548

November 7, 2003

The Honorable John W. Snow The Secretary of the Treasury

Dear Mr. Secretary:

The accompanying auditor's report presents the results of our audits of the Schedules of Federal Debt Managed by the Bureau of the Public Debt for the fiscal years ended September 30, 2003 and 2002. The Schedules of Federal Debt present the beginning balances, increases and decreases, and ending balances for (1) Federal Debt Held by the Public and Intragovernmental Debt Holdings, (2) the related Accrued Interest Payables, and (3) the related Net Unamortized Premiums and Discounts managed by the bureau.1

The auditor's report contains our (1) opinion on the Schedules of Federal Debt for the fiscal years ended September 30, 2003 and 2002, (2) opinion on the effectiveness of related internal control as of September 30, 2003, (3) conclusion on the bureau's compliance in fiscal year 2003 with laws we tested, and (4) conclusion on the consistency between information in the Schedules of Federal Debt and the Overview on Federal Debt Managed by the Bureau of the Public Debt.

As of September 30, 2003 and 2002, federal debt managed by the bureau totaled about $6,783 billion and $6,213 billion, respectively, for moneys borrowed to fund the government's operations. As shown on the Schedules of Federal Debt, these balances consisted of approximately (1) $3,924 billion as of September 30, 2003, and $3,553 billion as of September 30, 2002, of debt held by the public and about (2) $2,859 billion as of September 30, 2003, and $2,660 billion as of September 30, 2002, of intragovernmental debt holdings.

The level of debt held by the public reflects how much of the nation's wealth has been absorbed by the federal government to finance prior federal spending in excess of total federal revenues. It best represents the cumulative effect of past federal borrowing on today's economy and the federal budget. To finance a cash deficit, the government borrows from the

1Intragovernmental Debt Holdings represent federal debt issued by Treasury and held by certain federal government accounts, such as the Social Security and Medicare trust funds.

public. When a cash surplus occurs, the annual excess funds can then be used to reduce debt held by the public. In other words, cash deficits or surpluses generally approximate the annual net change in the amount of government borrowing from the public.

Cash surpluses during fiscal years 1998 through 2001 enabled Treasury to reduce debt held by the public by $476 billion, from $3,815 billion as of September 30, 1997, to $3,339 billion as of September 30, 2001. Treasury reduced this debt by redeeming maturing debt, reducing the number of auctions and size of new debt issues, conducting "buybacks" of debt before its maturity date, and redeeming callable securities when the opportunities arose.2 However, because of the return to deficits, in fiscal years 2002 and 2003, debt held by the public increased by $585 billion, with about $371 billion of this increase occurring in fiscal year 2003. Treasury issued more debt by increasing the number of auctions and the size of new debt issues. During fiscal year 2003, Treasury reintroduced the 3-year note, which will be offered every quarter. In addition, Treasury increased the offerings of the 5-year note from quarterly to monthly offerings; the 10-year note from an offering every quarter to eight offerings a year; and the 10-year inflation indexed note from three offerings a year to an offering every quarter. Notwithstanding the increases in fiscal years 2002 and 2003, debt held by the public as a percentage of total federal debt has decreased from approximately 71 percent as of September 30, 1997, to approximately 58 percent as of September 30, 2003.

Intragovernmental debt holdings represent balances of Treasury securities held by federal government accounts, primarily federal trust funds, that typically have an obligation to invest their excess annual receipts over disbursements in federal securities. Most federal trust funds invest in special U.S. Treasury securities that are guaranteed for principal and interest by the full faith and credit of the U.S. government. These securities are nonmarketable; however, they represent a priority call on future budgetary resources. Certain of these trust funds, such as the Social Security and federal civilian employee and military retirement trust funds, have been running cash surpluses, which are loaned to the Treasury and reduce the current need for the government to borrow from the public. Primarily as a result of such trust fund surpluses, intragovernmental debt holdings have increased by approximately $1,276 billion during fiscal years

2During this period, Treasury eliminated the 3-year note and the 52-week bill. On October 31, 2001, Treasury suspended issuance of the 30-year bond.

1998 through 2003, from $1,583 billion as of September 30, 1997, to $2,859 billion as of September 30, 2003, with about $199 billion of this increase occurring in fiscal year 2003. Intragovernmental debt holdings as a percentage of total federal debt have increased from approximately 29 percent as of September 30, 1997, to approximately 42 percent as of September 30, 2003.

The transactions relating to the use of the federal government accounts' surpluses net out on the government's consolidated financial statements because, in effect, they represent loans from one part of the government to another. Importantly, these intragovernmental debt holdings also constitute future obligations of the Treasury since the Treasury must provide cash to redeem these securities in order for the individual accounts to pay their benefits or other obligations as they come due. When this occurs, if sufficient cash surpluses are not available to redeem the securities, the government would either need to increase borrowing from the public, raise future taxes, reduce future spending, retire less debt (if the budget as a whole is in surplus), or some combination thereof.

While both are important, debt held by the public and intragovernmental debt holdings are very different. Debt held by the public approximates the federal government's competition with other sectors in the credit markets. Federal borrowing absorbs resources available for private investment and may put upward pressure on interest rates. In addition, interest on debt held by the public is paid in cash and represents a burden on current taxpayers. It reflects the amount the government pays to its outside creditors. In contrast, intragovernmental debt holdings perform an accounting function but typically do not require cash payments from the current budget or represent a burden on the current economy. In addition, from the perspective of the budget as a whole, interest payments to federal government accounts by the Treasury are entirely offset by the income received by such accounts-in effect, one part of the government pays the interest and another part receives it. This intragovernmental debt and the interest on it represents a claim on future resources and hence a burden on future taxpayers and the future economy. However, these intragovernmental debt holdings do not fully reflect the government's total future commitment to trust fund financed programs. They primarily represent the cumulative cash surpluses of those trust funds and also reflect future priority claims on the U.S. Treasury. They do not have the current economic effects of borrowing from the public and do not currently compete with the private sector for available funds in the credit markets. However, when trust funds redeem Treasury securities to obtain cash to

fund expenditures, and Treasury borrows from the public to finance these redemptions, there is competition with the private sector and thus an effect on the economy.

During fiscal year 2003, Treasury again faced the challenge of managing the debt within the statutory debt limit. On February 20, 2003, Treasury entered into a debt issuance suspension period that required it to depart from its normal debt management procedures and to invoke legal authorities provided to avoid breaching the debt limit. Actions taken by Treasury included suspending investment of receipts of the Government Securities Investment Fund (G-Fund) of the federal employees' Thrift Savings Plan, the Civil Service Retirement and Disability Trust Fund (Civil Service fund), and the Exchange Stabilization Fund; redeeming Civil Service fund securities early; suspending the sales of State and Local Government Series nonmarketable Treasury securities; exchanging Treasury securities for Federal Financing Bank securities; and recalling compensating balances held at some commercial banks. In addition, because the debt subject to the limit was so close to the ceiling during this period, Treasury turned to issuing bills with maturity dates of 14 days or less to manage short-term financing needs. On May 27, 2003, legislation was enacted to raise the statutory debt limit by $984 billion to $7,384 billion. Subsequently, Treasury restored all losses to the G-Fund and Civil Service fund in accordance with legal authorities provided to the Secretary of the Treasury. The Congressional Budget Office recently projected that this new debt limit will be reached during fiscal year 2004.3

The challenge of managing the federal debt is not likely to diminish any time soon. In fiscal year 2003 alone, debt held by the public increased by approximately 2.3 percent of gross domestic product (GDP)-from 34.2 percent at the start of the fiscal year to an estimated 36.5 percent at the end. Although the recession of 2001 has been over for almost 2 years, the federal budget deficit for fiscal year 2003 is the largest (in nominal dollars) on record, and projections suggest that the deficit for fiscal year 2004 will be even larger. Budget controls instituted to achieve balance in the past have expired, and no agreement has been reached on the appropriate structure or process for focusing on the large and growing fiscal challenges that now face the federal government.

3Congressional Budget Office, The Budget and Economic Outlook: An Update (Washington, D.C.: August 2003).

These large deficits come as the squeeze on the federal budget from the impending retirement of the baby boom generation is becoming more apparent in the fiscal outlook. Under the Congressional Budget Office's most recent 10-year budget outlook, economic growth is projected to be about half a percentage point lower on average after 2008 when the leading edge of the baby boom generation becomes eligible for early retirement. At the same time, growth in Social Security and Medicare spending is projected to accelerate while Medicaid spending is projected to continue growing even faster than these two programs. Under current law, spending for these three programs will account for nearly half of all federal spending in 2013. Indeed, GAO's long-term budget simulations continue to show that without changes to the major entitlement programs for the elderly, the nation will ultimately have to choose between escalating federal deficits and debt, significant tax increases, and/or dramatic budget cuts in other areas. Acting sooner rather than later is essential to ease these building fiscal pressures.

We are sending copies of this report to the Chairmen and Ranking Minority Members of the Senate Committee on Appropriations; the Senate Committee on Governmental Affairs; the Senate Committee on the Budget; the Subcommittee on Transportation, Treasury, and General Government, Senate Committee on Appropriations; the House Committee on Appropriations; the House Committee on Government Reform; the House Committee on the Budget; the Subcommittee on Transportation, Treasury, and Independent Agencies, House Committee on Appropriations; and the Subcommittee on Government Efficiency and Financial Management, House Committee on Government Reform. We are also sending copies of this report to the Commissioner of the Bureau of the Public Debt, the Inspector General of the Department of the Treasury, the Director of the Office of Management and Budget, and other agency officials. In addition, the report will be available at no charge on the GAO Web site at http://www.gao.gov.