Who do we owe the world debt to?

The world's debt is owed to a complex web of entities, primarily domestic and foreign investors, banks, pension funds, insurance companies, and central banks, who buy government bonds, with countries often owing debt to each other in a circular system where most debt is held by the wealthy within those nations, not just foreign powers. It's not one single group, but rather the holders of financial assets globally who become creditors to governments, corporations, and individuals.

What country do we owe the most debt to?

The U.S. owes the most money to Japan, which holds the largest amount of U.S. Treasury securities among foreign countries, followed by the United Kingdom and China as the next biggest foreign holders of American debt, according to data from 2024 and 2025. 

Who do we actually owe the national debt to?

Who owns the U.S. debt? There are two basic categories of debt owners: 1) the public, which includes foreign investors and domestic investors and, 2) federal accounts, also known as "intragovernmental holdings." Each category is explained below.

Who owns most of the world's debt?

The United States has the most government debt in absolute dollar terms, exceeding $38 trillion, followed by China and Japan, with the top three countries holding about 60% of the world's total government debt. While the U.S. has the largest amount, Japan often ranks high for debt as a percentage of its GDP (Gross Domestic Product). 

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.

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

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.

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 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. 

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. 

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.
 

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. 

Who borrowed from Social Security?

The U.S. Federal Government borrows from Social Security's trust funds (OASI & DI) by investing surplus payroll taxes into special Treasury securities, using the money for general spending like wars or tax cuts, and promising to repay it later with interest; this is a standard practice, not stealing, but it shifts future obligations, with presidents from Johnson to Bush (and beyond) participating in this "intragovernmental borrowing," which is essentially an IOU from the government to itself, backed by the "full faith and credit" of the U.S. 

Why don't countries pay off their debt?

Since a sovereign government, by definition, controls its own affairs, it cannot be obliged to pay back its debt. Nonetheless, governments may face severe pressure from lending countries.

What is the poorest country in the world?

As of late 2025/early 2026, South Sudan is widely considered the poorest country in the world, consistently ranking last or near-last by GDP per capita due to civil conflict, political instability, and resource issues, though Afghanistan also appears at the very bottom in some rankings. Other nations like Burundi, Central African Republic, and Yemen also face extreme poverty.
 

What rank is America in debt?

The United States has the largest external debt in the world. The total amount of U.S. Treasury securities held by foreign entities in December 2021 was $7.7 trillion, up from $7.1 trillion in December 2020. Total US federal government debt breached the $30 trillion mark for the first time in history in February 2022.

What did Bill Clinton do for America?

Clinton presided over the second longest period of peacetime economic expansion in American history. He signed into law the North American Free Trade Agreement and the Violent Crime Control and Law Enforcement Act but failed to pass his plan for national health care reform.

When was the last time the US had no debt?

The last time the U.S. had zero national debt was in 1835, under President Andrew Jackson, making it the only time in U.S. history the country was debt-free; however, it only remained so briefly before debt began accumulating again, with events like the Panic of 1837 contributing to the need for renewed borrowing. 

What was the biggest surplus in US history?

THE LARGEST UNIFIED SURPLUS EVER.

Now, instead of a $455 billion deficit, OMB estimates a surplus this year of at least $230 billion the third consecutive surplus and the largest surplus ever, even after adjusting for inflation.

What country has the worst debt?

The country with the worst debt depends on how you measure it, but Sudan often leads in debt-to-GDP ratio (around 250%+) due to conflict, while Japan has the highest among developed nations (over 230%), and the United States holds the largest absolute debt (trillions). Other nations with very high debt-to-GDP include Singapore, Greece, and Italy, with emerging economies like Sri Lanka, Laos, and Pakistan also facing severe distress. 

What happens if China starts selling US bonds?

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.

Does Russia have a national debt?

Yes, Russia has a national debt, but it's relatively low compared to many developed countries, with its government debt to GDP ratio hovering around 16-20% in recent years (2023-2024), though it can fluctuate, and the country maintains significant cash reserves, meaning most of its debt is domestic. While Russia's total gross debt includes substantial private (corporate) debt, its public debt remains manageable, with low external debt and large reserves, making it financially resilient despite sanctions, notes The Moscow Times and Trading Economics. 

Why does Warren Buffett own so many T-bills?

Buffett has publicly cited high asset prices and a lack of compelling acquisition targets as reasons for holding cash and T-bills.

Can the US get out of debt?

Yes, the U.S. can get out of debt, but it requires significant, often controversial, fiscal changes like substantial spending cuts (Social Security, Medicare), tax increases, or boosting economic growth dramatically; most economists agree a combination of spending reductions and revenue increases is needed to make the debt sustainable, as growing out of it alone is unlikely given current spending demands.
 

How much does the government owe for social security?

The government "owes" Social Security trillions because it borrowed surplus payroll taxes for other spending, creating an intragovernmental debt (like IOUs) held as U.S. Treasury securities, with estimates around $2.4 to $2.7 trillion in the Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) Trust Funds as of late 2024/mid-2025, which must be repaid from future revenues or borrowing to pay current and future benefits. This debt is part of the larger national debt and represents future obligations that current tax collections aren't fully covering, requiring increased borrowing or reforms.