Who does the US owe debt to?
Many people believe that much of the
The national debt of the United States is the total national debt owed by the federal government of the United States to Treasury security holders. The national debt at any point in time is the face value of the then-outstanding Treasury securities that have been issued by the Treasury and other federal agencies.
The federal government borrows money from the public by issuing securities—bills, notes, and bonds—through the Treasury. Treasury securities are attractive to investors because they are: Backed by the full faith and credit of the United States government. Offered in a wide range of maturities.
The majority of global debt is owned by households, accounting for about 95% of the world's net worth. The remaining 5% is held by governments, which include assets like foreign currency reserves, public real estate, and state-owned enterprises.
- Bermuda.
- Germany.
- Norway.
- Korea.
- Saudi Arabia.
- France.
- Singapore.
- Brazil.
At the top is Japan, whose national debt has remained above 100% of its GDP for two decades, reaching 255% in 2023.
Most include a combination of deep spending cuts and tax increases to bend the debt curve. Cutting spending. Most comprehensive proposals to rein in the debt include major cuts to spending on entitlement programs and defense.
Nearly every year, the government spends more than it collects in taxes and other revenue, resulting in a deficit. (The debt ceiling, set by Congress, caps how much the U.S. can borrow to pay for its remaining bills.) The national debt, now at a historic high, is the buildup of its deficits over time.
Mortgage balances, the largest source of debt for most Americans, rose 5.9 percent between 2020 and 2021.
1) Switzerland. It is no surprise to see Switzerland on this list. Switzerland is a country that, in practically all economic and social metrics, is an example to follow. With a population of almost 9 million people, Switzerland has no natural resources of its own, no access to the sea, and virtually no public debt.
Will the US ever pay off its national debt?
Eliminating the U.S. government's debt is a Herculean task that could take decades. In addition to obvious steps, such as hiking taxes and slashing spending, the government could take a number of other approaches, some of them unorthodox and even controversial.
Foreign holders of United States treasury debt
Of the total 7.6 trillion held by foreign countries, Japan and Mainland China held the greatest portions, with China holding 868.9 billion U.S. dollars in U.S. securities. Other foreign holders included oil exporting countries and Caribbean banking centers.
Who owns the most U.S. debt? Around 70 percent of U.S. debt is held by domestic financial actors and institutions in the United States. U.S. Treasuries represent a convenient, liquid, low-risk store of value.
Economic recession or slowdown: A default could undermine investor and consumer confidence, leading to reduced spending and investment. This could also result in an economic slowdown or even a recession, affecting businesses, job creation and overall economic growth.
Debt as a share of GDP has risen to about the same level as in the United States, while in dollar terms China's total debt ($47.5 trillion) is still markedly below that of the United States (close to $70 trillion). As for non-financial corporate debt, China's 28 percent share is the largest in the world.
If China “dumped” USA treasuries, they would take a serious monetary loss. The price of the treasuries would drop, effective raising the return for those who bought the bonds.
In total, other territories hold about $7.4 trillion in U.S. debt. Japan owns the most at $1.1 trillion, followed by China, with $859 billion, and the United Kingdom at $668 billion.
Rising debt reduces business investment and slows economic growth. It also increases expectations of higher rates of inflation and erosion of confidence in the U.S. dollar. The federal government should not allow budget imbalances to harm the economy and families across the country.
Just about every country has debt: governments take loans to pay for new roads and hospitals, to keep economies ticking over when recessions hit or tax revenues fall. Sometimes they borrow from countries, other times banks, or maybe asset managers—companies like those investing your pension dollars.
India takes the top spot. Its $39.7bn debt towards the WB recorded at the end of 2021 is double that of the next biggest debtor, Indonesia, with $19.6bn.
How much debt is Russia in?
Government Debt to GDP in Russia is expected to reach 18.10 percent of GDP by the end of 2024, according to Trading Economics global macro models and analysts expectations.
The federal government needs to borrow money to pay its bills when its ongoing spending activities and investments cannot be funded by federal revenues alone. Decreases in federal revenue are largely due to either a decrease in tax rates or individuals or corporations making less money.
Printing more money to eliminate debt is not a sustainable solution and can lead to severe economic consequences, particularly inflation. Here's why: Inflation:When a government prints more money without a corresponding increase in goods and services, the supply of money in the economy increases.
- 22 % Social Security.
- 14 % National Defense.
- 14 % Health.
- 13 % Net Interest.
- 12 % Medicare.
- 9 % Income Security.
- 4 % Veterans Benefits and Services.
- 3 % Education, Training, Employment, and Social Services.
The financial position of the United States includes assets of at least $269 trillion (1576% of GDP) and debts of $145.8 trillion (852% of GDP) to produce a net worth of at least $123.8 trillion (723% of GDP).
References
- https://chinapower.csis.org/us-debt/
- https://www.visualcapitalist.com/government-debt-by-country-advanced-economies/
- https://www.marketplace.org/2023/05/26/who-does-the-u-s-owe-31-4-trillion/
- https://www.statista.com/statistics/246420/major-foreign-holders-of-us-treasury-debt/
- https://www.gao.gov/americas-fiscal-future/federal-debt
- https://www.quora.com/If-China-sells-all-US-treasury-bonds-what-will-happen-to-the-US-economy
- https://www.investopedia.com/financial-edge/0611/june-20-5-ways-the-u.s.-can-get-out-of-debt.aspx
- https://abcnews.go.com/Politics/us-national-debt-grew-314-trillion-high/story?id=99429867
- https://www.cfr.org/backgrounder/us-national-debt-dilemma
- https://en.wikipedia.org/wiki/National_debt_of_the_United_States
- https://www.quora.com/What-would-happen-if-America-just-printed-more-money-until-we-were-out-of-debt-and-inflation
- https://fiscaldata.treasury.gov/americas-finance-guide/federal-spending/
- https://www.clearfinances.net/countries-without-public-debt/
- https://www.fdiintelligence.com/content/data-trends/the-world-banks-top-10-biggest-debtors-82044
- https://finance.yahoo.com/news/top-20-countries-owe-us-175515001.html
- https://www.imf.org/en/Blogs/Articles/2023/09/13/global-debt-is-returning-to-its-rising-trend
- https://medium.com/@fatherOrestes/global-debt-who-we-owe-and-its-implications-873a50f95cda
- https://en.wikipedia.org/wiki/Financial_position_of_the_United_States
- https://fiscaldata.treasury.gov/americas-finance-guide/national-debt/
- https://www.bu.edu/articles/2023/what-is-the-sovereign-debt-crisis-and-can-we-solve-it/
- https://finance.yahoo.com/news/happens-u-defaults-debt-143652479.html
- https://www.bankrate.com/personal-finance/debt/average-american-debt/
- https://tradingeconomics.com/russia/government-debt-to-gdp
- https://www.pgpf.org/top-10-reasons-why-the-national-debt-matters