Who is Japan most in debt to?

Japan's government debt is overwhelmingly held domestically, primarily by the Bank of Japan, its own banks, and insurance companies, not foreign entities, creating a stable "closed loop" system where interest payments mostly stay within the country. While Japan is a major holder of U.S. debt, its own national debt is mostly financed by Japanese savers and institutions.

Who holds most of Japan's debt?

The Bank of Japan holds the most Japanese debt. Then insurance, banks, other sovereigns.

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 does the US owe more money to, China or Japan?

Japan is the largest foreign holder of U.S. debt, with over $1 trillion, followed by China ($759 billion) and the United Kingdom ($723 billion).

Why is Japan so heavily in debt?

Japan's massive debt stems from decades of <<a>persistent fiscal deficits</a>, triggered by <<a>bursting asset bubbles</a> in the 1990s, and exacerbated by a rapidly <<a>aging population</a> requiring huge social security/healthcare spending, all while trying to stimulate near-zero economic growth with <<a>stimulus packages</a> and <<a>low interest rates</a>, with most debt held domestically by Japanese entities like the Bank of Japan, making it seem sustainable but creating future fiscal pressures. 

Why Japan Hasn't Collapsed from Its 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.

Which country is most in debt?

The United States has the most national debt by total dollar amount (over $38 trillion in 2025), while Japan often ranks highest for debt as a percentage of its GDP (over 230%), indicating a larger burden relative to its economy, with countries like Sudan also facing extremely high debt-to-GDP ratios. China, Japan, the UK, and France follow the U.S. in total debt figures, but Japan's debt relative to its economic size is a major concern, notes Visual Capitalist and this article from 2025.
 

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.

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.
 

Which country owns most U.S. debt?

Japan holds the most U.S. debt among foreign countries, followed by the United Kingdom, and then China, with Japan consistently topping the list for several years, though China held the top spot from 2009-2019. These countries purchase U.S. Treasury securities as safe investments, with the U.S. government also holding a significant portion of its debt internally.
 

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 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. 

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.

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. 

What is the savings rate in Japan?

Japan Gross Savings Rate was measured at 30.1% in Mar 2024, compared with 30.1% in the previous quarter. Japan Gross Savings Rate is updated quarterly, with data available from Mar 1980 to Mar 2024, and an average rate of 30.1%.

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 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 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. 

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

A default on all outstanding U.S. Treasuries would almost surely precipitate a global financial crisis. Further, because about 70% of the debt is held by Americans, most of the savings from foregone interest payments would be at the expense of U.S. investors.

Is China's debt worse than the US?

While the U.S. has higher absolute government debt, many economists argue China's debt is proportionally worse and more systemic due to its rapid growth, hidden local government liabilities, and China's status as a less developed economy with less financial flexibility than the U.S., creating significant risks despite different underlying economic structures. China's total debt (corporate, household, government) as a percentage of GDP often surpasses the U.S., driven by massive infrastructure spending and real estate, with significant hidden local government debt (LGFVs) adding to the concern. 

What is the safest place for money if the US defaults on debt?

If the US defaults. there is no safe place to put your US Dollars. The alternatives are commodities (gold,silver,collectibles) or possibly foreign currencies (euro,pound,etc). But really, if the US defaults the best assets you'll have would be canned goods and ammunition.

Could China survive without the US?

Yes, China could survive without the U.S. because it has diversified its trading partners significantly, particularly within Asia, the EU, and the Global South, and possesses a massive internal market, but losing the U.S. market would still cause significant economic disruption, slow growth, and impact its technological development in key areas like semiconductors, forcing reliance on domestic innovation or alternative partners like Europe. 

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.
 

Which state has the highest debt?

California has the highest total state government debt, exceeding $490 billion, but when considering debt per person (per capita) or debt relative to income, states like Connecticut (per capita liabilities) or Idaho/Hawaii (household debt-to-income) rank higher, highlighting different ways to measure "highest debt".
 

Which country takes the highest loan from World Bank?

The United States has the highest total government debt by far, followed by China and Japan, which together hold a massive portion of global debt, though the World Bank focuses on various debt metrics for different country types. While the US leads in total debt, Japan often has the highest debt-to-GDP ratio among major economies, while low-income nations like Mozambique face severe debt distress relative to their income.