Financial Repression Tracker

Rules that steer savings into government debt or hold returns below inflation, country by country.

Steer · Captive demand

Mandatory investment of public trust and insurance funds in government securities

What it is
Social-security, deposit-insurance and similar public funds are legally restricted to investing in government obligations.
Why it counts
Surplus contributions are lent to the treasury in non-marketable or marketable bonds, financing deficits without market discipline.

When it was in force

  • United States: 1935 → now, in force
  • United States: 1950 → now, in force

2 examples

  1. United States

    1935 → nowIn force

    Social Security trust fund reserves may be invested only in US government obligations.

    Social Security Act, 42 U.S.C. 401(d)Secondary source
    “Such investments may be made only in interest-bearing obligations of the United States or in obligations guaranteed as to both principal and interest by the United States.”

    law.cornell.edu (opens in a new tab)Checked: quote matched on the page by script

    United States today: index 42.9

  2. United States

    1950 → nowIn force

    The FDIC's Deposit Insurance Fund must be invested in US government obligations.

    Federal Deposit Insurance Act, 12 U.S.C. 1823(a)Secondary source
    “Funds held in the Deposit Insurance Fund or the FSLIC Resolution Fund, that are not otherwise employed shall be invested in obligations of the United States”

    law.cornell.edu (opens in a new tab)Checked: quote matched on the page by script

    United States today: index 42.9

Examples and their dates reviewed .

Further reading

12 more on captive demand