What 3 countries does the US owe the most money to?
Japan owns the most at $1.1 trillion, followed by China, with $859 billion, and the United Kingdom at $668 billion. In isolation, this $7.4 trillion amount is a lot, said Scott Morris, a senior fellow at the Center for Global Development.
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.
The $34 trillion gross federal debt includes debt held by the public as well as debt held by federal trust funds and other government accounts. In very basic terms, this can be thought of as debt that the government owes to others plus debt that it owes to itself.
China is one of the United States's largest creditors, owning about $859.4 billion in U.S. debt.
- Bermuda. Total Debt Held: $77.4 Billion. ...
- Germany. Total Debt Held: $91.3 Billion. ...
- Norway. Total Debt Held: $104.4 Billion. ...
- Korea. Total Debt Held: $105.8 Billion. ...
- Saudi Arabia. Total Debt Held: $111 Billion. ...
- France. Total Debt Held: $183.9 Billion. ...
- Singapore. ...
- Brazil.
What countries does the U.S. owe money to in 2021? The United States owes money to many countries, including Japan, mainland China, the U.K., Ireland, Luxembourg, Brazil, Switzerland and Belgium, among others.
Who owns this debt? The public owes 74 percent of the current federal debt. Intragovernmental debt accounts for 26 percent or $5.9 trillion. The public includes foreign investors and foreign governments.
Rank | Country | Share of Total |
---|---|---|
1 | šÆšµ Japan | 14.7% |
2 | šØš³ China | 11.9% |
3 | š¬š§ United Kingdom | 8.9% |
4 | š§šŖ Belgium | 4.8% |
Including both private and public debt holders, the top three December 2020 national holders of American public debt are Japan ($1.2 trillion or 17.7%), China ($1.1 trillion or 15.2%), and the United Kingdom ($0.4 trillion or 6.2%).
- Tax hikes alone are rarely enough to stimulate the economy and pay down debt.
- Governments often issue debt in the form of bonds to raise money.
- Spending cuts and tax hikes combined have helped lower the deficit.
- Bailouts and debt defaults have disadvantages but can help a government solve a debt problem.
How many trillions does US owe?
The $34 trillion gross federal debt equals debt held by the public plus debt held by federal trust funds and other government accounts. In very basic terms, this can be thought of as debt that the government owes to others plus debt that it owes to itself. Learn more about different ways to measure our national debt.
It began rising at a fast rate in the 1980's and was accelerated through events like the Iraq Wars and the 2008 Great Recession. Most recently, the debt made another big jump thanks to the pandemic with the federal government spending significantly more than it took in to keep the country running.
The most immediate effect would be an increase in interest rates on Treasuries since selling so many at once would artificially depress their prices in the bond market; thus increasing their yields.
What would happen if China stopped buying US debt? Very little. China holds only about five percent of the US public debt, and roughly the same amount that Japan holds. The largest creditor of the US government is actually the Social Security Administrationāin effect, the government itself.
As a result, if the United States and other countries were to stop trading with China, it would disrupt global supply chains and cause economic disruptions in many countries.
1) Switzerland
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.
On the other hand, Mexico holds about $34B of US debt. So if we were to make a balance, Mexico owes the US $134B, more or less, or about 8% of what it makes in a year.
[2] A report by the credit rating agency S&P Global in 2022 estimated that 79 per cent of corporate debt in China was owed by SOEs (the IMF does not break down the proportion of debt owed by SOEs).
How much does the UK owe the US? Nothing. As previously stated the UK's war debt to the US was finally paid off in 2006, every last dollar.
- Ukraine ($16.4 billion)
- Israel ($3.3 billion)
- Ethiopia ($1.95 billion)
- Jordan ($1.65 billion)
- Egypt ($1.43 billion)
- Afghanistan ($1.19 billion)
- Somalia ($1.13 billion)
- Yemen ($1.05 billion)
Why does the US owe Japan?
Japan sells more to the U.S. than it buys from the U.S. and thus has excess dollars; Japanese investors can easily get a better and safer return by buying U.S. Treasury bonds than by buying other investment vehicles.
The federal government borrows money from the public by issuing securitiesābills, notes, and bondsāthrough 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.
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.
Selling Treasurys is a fast way to whip up U.S. dollars, and China will sometimes use extra dollars to go out on the global market and buy up their own currency. That artificially pumps up its value. It's like planting someone at an auction to drive up your prices.
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.
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