The United States owes $36 trillion in national debt, making it the most indebted country globally. This enormous figure reflects the cumulative amount the federal government has borrowed over the years to finance its operations, cover deficits, and respond to economic challenges.
Roughly one-quarter of this debt is owned by foreign governments and international investors. Countries like Japan and China are among the largest foreign creditors, each holding substantial amounts in U.S. government bonds. Other nations with significant holdings include the UK and various European financial centers.
The rest of the debt—about 75%—is held within the United States. Key domestic holders include the Federal Reserve, financial institutions, retirement funds, and individual investors. The Federal Reserve plays a central role by holding a large portion of this debt to help manage monetary policy and economic stability.
One of the key concerns surrounding the national debt is the rising cost of interest payments, which could limit spending on critical public services. Additionally, long-term borrowing may reduce confidence among investors and potentially lead to higher interest rates.
Still, many experts believe that, given the size and strength of the U.S. economy, the government can handle substantial debt levels, particularly when the borrowed money supports growth and development.
As discussions continue in Washington about how to manage the growing debt—through spending changes, tax adjustments, or other policy measures—questions persist about the sustainability of current fiscal practices and the long-term implications for future generations.
