How much money does US owe Japan?

The U.S. owes Japan roughly $1.1 trillion in U.S. Treasury securities, making Japan the largest foreign holder of American debt, though figures fluctuate; this debt represents loans for funding U.S. government operations, with data from late 2024/early 2025 showing amounts around $1.06 to $1.13 trillion.

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.

Who owns most of Japan's debt?

Around 70% of Japanese government bonds are purchased by the Bank of Japan, and much of the remainder is purchased by Japanese banks and trust funds, which largely insulates the prices and yields of such bonds from the effects of the global bond market and reduces their sensitivity to credit rating changes.

What country has the highest debt in the USD?

The United States continues to lead with $38.3 trillion in government debt, which accounts for just over one third of the global debt pile. China and Japan follow with $18.7 trillion and $9.8 trillion respectively, meaning the top three countries combined account for 60% of the world's debt.

Who does the US owe the national debt to?

The U.S. national debt is owed to a mix of domestic and foreign investors, government entities, and the Federal Reserve, primarily through Treasury securities, with major holders including mutual funds, pension funds, banks, state/local governments, individual investors, and foreign nations like Japan, China, and the UK, plus significant "intragovernmental" holdings by federal trust funds like Social Security. 

Why Japan Owns So Much U.S. Debt

How much does China owe the USA?

China holds a significant amount of U.S. debt, primarily in Treasury bonds, with recent figures (late 2024/early 2025) showing China owning around $750-$800 billion in U.S. securities, making it the second-largest foreign holder after Japan, though this is a smaller percentage of the total U.S. debt. This amount fluctuates as China has been reducing its holdings, but it represents loans from China to the U.S. government, not a debt the U.S. owes to China in a punitive way, but rather investments in U.S. assets. 

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.

Can the USA get out of debt?

There are a number of methods to reduce the U.S. national debt that go beyond raising taxes and cutting discretionary spending. One of the most controversial is to open the nation's borders to more immigration, kick-starting entrepreneurship and consumption.

Which country has the lowest debt?

Countries with the Lowest National Debt

• Brunei. 3.2%
• Afghanistan. 7.8%
• Kuwait. 11.5%
• Democratic Republic of Congo. 15.2%
• Eswatini. 15.5%
• Palestine. 16.4%
• Russia. 17.8%

What country owes the US the most money?

The country that owes the U.S. the most money, in terms of holding U.S. Treasury debt, is Japan, followed by China and the United Kingdom, with Japan holding over $1 trillion as of late 2024/early 2025, having surpassed China for the top spot in recent years. This foreign-held debt represents U.S. government borrowing, where foreign entities invest in safe U.S. securities, but the U.S. government itself holds the largest portion of its own debt. 

What would happen if Japan sold US debt?

If Japan sold massive amounts of US debt, it would very likely spark a massive Treasury selloff. Treasury rates would in turn sharply increase, making it more expensive for Washington to borrow and freaking out investors along the way.

Can Japan pay its debt?

Not quite. Japan's fiscal strategy has relied on using financial and banking rules to assure that it could finance its debt cheaply, through the Bank of Japan, which meant that Japan's households have received much lower returns on their saving.

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. 

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.

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. 

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 has the worst debt in the world?

There isn't one single "worst" due to different measures, but Japan often leads in debt relative to economic size (high debt-to-GDP), while the United States has the highest total dollar amount of government debt and high external debt, and countries like Lebanon, Venezuela, and Sri Lanka face severe crises from sovereign defaults. High Debt-to-GDP (e.g., Japan, Italy, Eritrea) shows a country's burden relative to its income, whereas high total debt (e.g., U.S., China) reflects the sheer scale, and sovereign defaults (e.g., Lebanon) signal extreme financial distress. 

Did the US ever have zero debt?

Yes, the United States was debt-free for a brief period, specifically around January 1, 1835, during President Andrew Jackson's administration, marking the only time in U.S. history the national debt was zero, though it quickly re-accumulated and the nation has been in debt ever since. This rare event was achieved through budget surpluses from land sales and spending cuts but was short-lived, with debt growing again by 1836 due to economic downturns like the Panic of 1837. 

Is China debt free?

The national debt (or government debt) of the People's Republic of China is the total amount of money owed by the central government, local governments, government branches and state organizations of China. According to the International Monetary Fund, general government debt amounted to 77% of GDP in 2022.

What is the #1 cause of debt in the US?

The leading cause of debt in America, by far, is mortgage debt, making up about 70% of total household debt, as housing is the largest purchase for most Americans. Following mortgages, major drivers of personal debt include auto loans, student loans, credit cards, often used for unexpected expenses like medical bills, and rising costs for necessities like childcare. 

Is Trump going to forgive tax debt?

There is no IRS forgiveness plan officially introduced by Trump in 2025. While some campaign proposals have discussed tax simplification or reduced rates, they do not include debt cancellation for individuals with unpaid taxes.

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.

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.

Is being debt-free the new rich?

Yes, for many people, being debt-free feels like the new rich because it provides immense financial freedom, peace of mind, and security, even if it doesn't mean having millions in the bank; it shifts the definition of wealth from pure income to a lack of financial burdens, allowing for more saving, investing, and enjoying life without stress. While traditional wealth is assets minus liabilities, eliminating debt frees up income for wealth-building, making it a significant step towards financial well-being and independence, especially as many struggle with rising costs and stagnant wages.