Which country has highest debt?

The country with the highest national debt in absolute dollars is the United States, while Japan has the highest debt relative to its economy (debt-to-GDP ratio). Other nations with significant debt burdens relative to GDP include Sudan, Singapore, and some European countries like Greece and Italy.

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 the US debt the highest in the world?

Yes, the U.S. has the highest total national debt in absolute dollar terms (around $38 trillion in late 2025), but when measured as a percentage of its economy (debt-to-GDP ratio), it ranks high but is surpassed by countries like Japan and Italy, reflecting large, ongoing deficits driven by spending, aging populations, and healthcare costs, though the dollar's reserve status helps manage the burden.
 

Which country has zero debt?

As the world's biggest gambling hub, Macao SAR has zero debt, bolstered by billions in gaming revenue and healthy financial reserves. Liechtenstein ranks in second, with virtually no debt and the only country in Europe ranking in the top 10.

Who is in more debt, the US or China?

The United States has a higher total absolute government debt than China, but China's total debt (including local governments and state-owned enterprises) relative to its economic output (GDP) is significantly higher and growing faster, potentially posing greater risks as it's a less developed economy with less transparent reporting. While the U.S. holds the top spot in total national debt in dollar terms, China's debt burden relative to its GDP (around 300% total debt) is much larger and its debt-to-GDP ratio has recently surpassed the U.S. and EU. 

Why Every Country Is in Debt? And Who Do They Owe?

What would happen if China sold U.S. debt?

Since the U.S. dollar has a variable exchange rate, however, any sale by any nation holding huge U.S. debt or dollar reserves will trigger the adjustment of the trade balance at the international level. The offloaded U.S. reserves by China will either end up with another nation or will return to the U.S.

Who does the US owe 36 trillion to?

The U.S. owes its $36 trillion national debt to a mix of domestic and foreign entities, primarily American investors, institutions (like pension funds, banks), the Federal Reserve, government trust funds (like Social Security), and foreign governments and investors, with Japan and China being major foreign holders of Treasury bonds. About two-thirds is held domestically, while the rest is owned by foreign entities, with Japan leading as the largest foreign creditor.
 

Can the USA get out of debt?

While the U.S. technically could pay off its massive national debt, it's highly unlikely due to political hurdles and the sheer scale of required budget cuts or tax hikes, with most economists suggesting managing it via economic growth, fiscal adjustments (taxes/spending), and debt refinancing, rather than full repayment, as countries issue debt in their own currency and can effectively manage it long-term. 

Who owes the US the most money?

The country the U.S. owes the most money to is Japan, holding over $1 trillion in U.S. Treasury securities, followed by the United Kingdom and China, though the U.S. government itself holds the largest portion of its own debt through various trust funds. 

What country has the worst debt?

There isn't one single "worst" debt country, as it depends on the metric: Japan often leads in debt-to-GDP ratio (government debt relative to economic size), while the United States has the largest absolute national debt and significant external debt, though its large economy helps manage it. Other countries with high debt-to-GDP ratios include Sudan, Lebanon, and Venezuela, often due to instability or specific economic challenges.
 

How many Americans are 100% debt free?

Roughly 23% of Americans are 100% debt-free, according to recent Federal Reserve and WalletHub data, a figure that accounts for all debt types, including mortgages, student loans, and credit cards. While many aspire to be debt-free, considering it a key part of financial success, a significant portion of the population carries some form of debt, with higher rates of unsecured debt among younger adults but more significant amounts among older groups, note YouGov and ACA International. 

Has America ever paid off its debt?

Yes, the U.S. paid off its entire national debt once, in 1835, under President Andrew Jackson. This was the only time in U.S. history the debt reached zero, achieved through budget surpluses from land sales and tariffs, but the country began borrowing again shortly after, leading to the Panic of 1837. 

Who owns U.S. debt?

U.S. debt is owned by a mix of domestic and foreign investors, including U.S. government accounts (like Social Security), the Federal Reserve, private U.S. investors (individuals, banks, mutual funds, pension funds), and foreign governments and investors, with Japan, China, and the UK being top foreign holders. Roughly two-thirds is held domestically (by the public and government), while about one-third is held by foreign entities.
 

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

If the U.S. paid off its national debt, it would likely cause a massive economic shock, potentially triggering a depression, because US Treasury bonds (the debt) are considered ultra-safe assets that act like cash for global savings and investments, removing them would eliminate a huge pool of safe financial instruments, forcing banks, pension funds, and investors to seek riskier assets, crashing markets and slashing investment, even though it sounds good on paper. It would remove interest payments, freeing up funds, but the immediate withdrawal of trillions in savings/investments would devastate the economy before any benefits were felt. 

Why doesn't China call in US debt?

Treasury bonds are freely traded financial instruments, China cannot —nor can any other creditor—simply demand a repayment at their will. Additionally, because the U.S. controls its own currency, it has the ability to manage its debt through fiscal and monetary policies.

Who owns the 35 trillion in US debt?

The U.S. owes its $36+ trillion national debt to a mix of domestic and foreign entities, primarily investors, financial institutions, and other governments, with major foreign holders including Japan, China, and the U.K., while domestically, the Federal Reserve, mutual funds, and government trust funds are significant holders, essentially the government owing itself money through programs like Social Security. 

Is Canada a rich country?

Canada has a highly developed mixed economy. As of 2025, it is the ninth-largest in the world, with a nominal GDP of approximately US$2.39 trillion. Its GDP per capita in purchasing power parity (PPP) international dollars is about 27.5% lower than that of the highest-ranking G7 country.

What country owns the most money to the US?

Drilling into the roughly 24% of U.S. federal debt held by foreign investors at the end of 2024 reveals that Japan remains the largest holder, with $1.06 trillion in U.S. Treasuries, followed by China at $759 billion.

Which country borrows the most money from World Bank?

NEWS | India leads the list of countries borrowing from the World Bank, holding USD 39.3 billion in outstanding loans, according to recent data.

What happens if the USA can't pay its debt?

If the U.S. defaults on its debt, it would trigger a catastrophic global financial crisis, leading to a severe recession, stock market crash, skyrocketing interest rates (mortgages, loans), massive job losses, suspended federal payments (Social Security, military), a downgraded U.S. credit rating, and long-term damage to the U.S. dollar's status as a safe asset, fundamentally altering its global economic role. 

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 #1 cause of debt in the US?

The leading cause of debt in America by total dollar amount is mortgages, making up about 70% of all household debt, as housing is the largest purchase for most people. However, for non-mortgage debt, major drivers include credit card debt, student loans, auto loans, and rapidly rising medical expenses, which often push people into debt or require credit cards/loans for emergencies and daily living. 

What percent of Americans are 100% debt free?

Roughly 23% of Americans are completely debt-free, according to Federal Reserve data, though this varies significantly by age, with younger adults more likely to have no debt and older adults (over 77) also seeing higher rates, while middle-aged groups carry the most debt. While many strive for financial freedom, studies show fewer than 1 in 10 Americans feel truly financially free, with most struggling to make ends meet or having significant financial burdens like mortgages or credit card balances. 

Why can't the US get out of debt?

The U.S. doesn't aim to "pay off" its national debt because it's seen as a revolving form of national financing, not a household debt to eliminate; instead, it manages it through continuous borrowing, issuing bonds, and relying on economic growth, with the debt funding services and investments while also providing safe assets for global markets, but it faces risks of spiraling interest costs and potential loss of investor confidence if deficits aren't controlled. Key drivers for debt growth include spending on popular programs (Social Security, healthcare, defense), wars, recessions, tax cuts, and the interest itself, making politically difficult choices between spending cuts, tax hikes, or managing inflation the only paths forward. 

Who was the last president to balance the US budget?

The last president to balance the U.S. federal budget, resulting in budget surpluses, was Bill Clinton, with surpluses occurring for four consecutive fiscal years from 1998 to 2001, marking the first time in decades the government had balanced its books. This was achieved through a combination of tax increases (especially on the wealthy), spending cuts, a strong economy, and the Balanced Budget Act of 1997.