Does Japan owe the U.S. money?

No, Japan doesn't owe the U.S. money; rather, the U.S. government owes Japan money because Japan holds a significant amount of U.S. Treasury bonds, making the U.S. the debtor and Japan a major creditor, a common situation where nations invest surplus currency in secure U.S. debt. Japan buys U.S. debt to park its large foreign currency reserves (from trade surpluses) in a safe, liquid asset that also helps keep its currency value down, boosting exports.

How much debt does Japan own of the US?

Japan is the largest foreign holder of U.S. debt, owning around $1.1 to $1.15 trillion in U.S. Treasury securities as of mid-2025, though amounts fluctuate, with figures around $1.13 trillion being common in recent reports from April-May 2025, making it easily the top overseas investor in the U.S. government. 

Why does the US owe so much money to Japan?

Japan and China bought so much US debt despite the risk of inflation because they needed a safe haven for their foreign reserves and to maintain their export competitiveness.

Who owns over 70% of the US debt?

Who owns the most U.S. debt? Around 70-80 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.

Is Japan selling its US debt?

Yes, Japan has been selling U.S. debt (Treasury bonds) due to factors like supporting the yen, higher domestic yields (making U.S. bonds less attractive), new solvency rules for Japanese insurers, and general portfolio rebalancing, though the scale and timing vary, with major sales in late 2025 and early 2026 showing a shift away from record holdings, even as they remain the largest foreign holder. 

Why Japan Owns So Much U.S. Debt

Which is richer, the USA or Japan?

No, the United States is significantly richer than Japan when comparing overall economic output (total GDP) and wealth per person (GDP per capita), with the U.S. holding the world's largest economy and much higher average income levels, despite Japan being a major global economic power with a large GDP and substantial savings, notes this Get Golden Visa article and Worldometer data on GDP, as shown in data from early 2026 and recent years. 

Which country is dumping the US bond?

The nations with the largest holdings of Treasury securities – Japan and China – are often blamed as the culprits of recent volatility in the US Treasury market.

How many Americans are 100% debt free?

Around 23% of Americans are debt free, according to the most recent data available from the Federal Reserve.

Who owns the 35 trillion in US debt?

Who Owns All that Debt? On October 21, 2025, the nation's gross debt eclipsed $38 trillion. Of that amount, approximately 80 percent, was debt held by the public — representing cash borrowed from domestic and foreign investors.

Why can't the US get out of debt?

The U.S. doesn't pay off its national debt because it consistently spends more than it collects in revenue, creating annual deficits that add to the debt, while also using debt to fund investments and maintain the global financial system, making large cuts or tax hikes politically challenging and unpopular. Instead of paying it down, the government often borrows more to service existing debt, relying on the U.S. dollar's reserve currency status and a stable economy to attract investors, but faces growing risks from escalating interest payments and potential loss of confidence. 

Is Japan in trouble financially?

Yes, Japan faces significant financial challenges, primarily its massive public debt (over 250% of GDP) and an aging population, putting pressure on fiscal stability and leading to a weaker yen, though it has been buffered by high domestic savings and central bank bond purchases, but rising global interest rates are increasing debt servicing costs and risks. While its economy has seen stagnation, new concerns involve "dementia money" (inactive funds) and declining innovation, signaling long-term structural issues despite being a top global economy. 

Does the US owe China money?

Yes, the U.S. owes China money because China buys U.S. Treasury bonds, essentially lending money to the U.S. government, with China holding hundreds of billions in U.S. debt (around $750-$850 billion in recent years), though Japan holds more, and most U.S. debt is actually held domestically. This debt arises from China's trade surplus, using excess U.S. dollars to purchase these bonds, creating a financial relationship where China benefits from U.S. economic stability, notes the US-China Business Council and Investopedia. 

How much does Japan rely on the US?

According to the trade statistics published by the Ministry of Finance, the US was the largest market in yen-terms for the Japanese exports in 2024, absorbing 20 percent of the total goods exported. It was followed by China whose share was 18 percent (Figure 1).

Who does the US owe 36 trillion to?

The U.S. owes its $36 trillion national debt to a mix of domestic investors (like banks, mutual funds, and individuals), U.S. government accounts (like Social Security), the Federal Reserve, and foreign investors, with Japan, the UK, and China being the largest foreign holders, primarily through purchasing U.S. Treasury bonds. The largest portion is held domestically, but foreign entities hold trillions, making countries like Japan and China significant lenders.
 

How is Japan surviving with so much debt?

Japan has a third option, which is for the government to sell some of the financial assets it holds and use the proceeds to retire debt. These asset holdings are very substantial, which is why Japan's net government debt is so much lower than its gross debt.

Which country has the highest debt in the world?

The United States has the largest national debt in absolute dollar terms, with figures nearing $38 trillion in late 2025, followed by China and Japan. However, when debt is measured as a percentage of economic output (debt-to-GDP), Japan has the highest ratio (over 230%), indicating a greater burden relative to its size, with other high-ratio countries including Greece and Italy.
 

What would happen if the US paid off all its debt?

If the U.S. paid off all its debt, it would trigger an economic crisis by eliminating safe investment options (Treasury bonds), causing a massive cash glut, crashing interest rates, disrupting monetary policy (Federal Reserve operations), forcing cuts in government services/spending, and potentially leading to a depression as the economy would lose its primary safe asset, disrupting the entire global financial system that relies on U.S. debt. The process itself, whether through extreme taxes or printing money, would likely cause hyperinflation or deep recession, while the end result removes a critical benchmark for the global economy.
 

Who owes the US the most money?

The U.S. owes the most money to its own domestic investors and government entities, holding the largest portion of its national debt, but among foreign countries, Japan is the largest holder of U.S. debt, followed by the United Kingdom and China, who consistently rank as the top foreign creditors. 

Who was the last president to balance the US budget?

The last president to oversee a balanced federal budget was Bill Clinton, whose administration achieved budget surpluses for four consecutive years, from fiscal years 1998 to 2001, marking the first sustained period of budget balance in decades. This rare feat was due to a combination of economic growth, spending cuts, and tax increases, and it ended with the start of the new millennium, after which deficits returned. 

How many Americans have $20,000 in credit card debt?

A majority of Americans (53%) carry some, with an average balance of $7,719. However, a third of those carrying debt (32%) owe $10,000 or more, while almost 1 in 10 (9%) have credit card debt over $20,000.

What is the credit card limit for $70,000 salary?

The credit limit you can expect for a $70,000 salary across all your credit cards could be as much as $14000 to $21000, or even higher in some cases, according to our research. The exact amount depends heavily on multiple factors, like your credit score and how many credit lines you have open.

Can the US ever be debt-free?

It's highly unlikely the U.S. will ever fully "pay off" its national debt in the way a household pays a mortgage, as governments manage debt through continuous borrowing (rolling over bonds), but they must control its growth relative to the economy (GDP) through spending cuts, tax increases, or economic growth to prevent fiscal crises, requiring drastic measures like cutting Social Security/Medicare or significant tax hikes to make a real dent. While the U.S. can technically print its own currency, excessive money printing risks severe inflation, and managing debt sustainably involves balancing deficits with revenue and economic output. 

Who is buying U.S. debt now?

Annual totals are based on data from April of each year. Inflation adjusted to the 2023 calendar year. As of April 2024, the five countries owning the most US debt are Japan ($1.1 trillion), China ($749.0 billion), the United Kingdom ($690.2 billion), Luxembourg ($373.5 billion), and Canada ($328.7 billion).

Does Russia hold U.S. bonds?

Russia's holdings of U.S. treasury securities have decreased since 2014 following the Western sanctions over the annexation of Crimea and have further dropped in 2022 after more restrictions were imposed over the war in Ukraine.

What would happen if China called in America's debt?

The U.S. dollar would depreciate and the yuan would appreciate if China called in all its U.S. holdings, making Chinese goods more expensive.