The subject #USNationalDebt (U.S. National Debt) is one of the most sensitive and impactful economic and political topics, with local and global implications. Here’s a simplified overview:
⸻
🔹 What is the U.S. national debt?
It is the total amount of money borrowed by the U.S. federal government to cover the budget deficit, which is the difference between revenues (such as taxes) and expenditures (such as spending on defense, social security, healthcare…).
⸻
🔹 Components of the debt:
Divided into two main types:
1. Public Debt: What the government issues in bonds in the market and is bought by individuals or institutions or countries.
2. Intragovernmental Holdings: What the government borrows from itself, such as Social Security funds.
⸻
🔹 Approximate figures (up to 2025):
• The total national debt has exceeded 34 trillion dollars.
• The debt is equivalent to more than 120% of gross domestic product (GDP).
• The annual interest on the debt now exceeds one trillion dollars per year, increasing the financial burden.
⸻
🔹 Why does America continue to borrow?
• The United States has global confidence in its economy.
• The U.S. dollar is the world's primary reserve currency.
• U.S. debt instruments (such as Treasury bonds) are considered safe investments.
⸻
🔹 Who are the major holders of U.S. debt?
• American citizens and American financial institutions.
• Countries such as: Japan, China, the United Kingdom, and recently Saudi Arabia and India also to lesser degrees.
⸻
🔹 Potential risks:
• Increasing interest burdens reduces the government's ability to fund essential services.
• It may lead to a downgrade of the United States' credit rating.
• Pressure on the dollar if global confidence is lost.
• The possibility of debt ceiling crises (like those in 2011 and 2023).
⸻
🔹 Is this debt explosive?
The American economy is strong and diverse, but:
• If the increase continues unchecked, it could lead to a crisis of confidence.
• High inflation and interest makes servicing the debt more difficult.
⸻
🔹 Quick comparison:
Country Debt to GDP Ratio
America 🇺🇸 ~120%
Japan 🇯🇵 >230% (but most of the debt is domestic)
Germany 🇩🇪 ~65%
Egypt 🇪🇬 ~90%
⸻
🔹 Summary:
The United States is still able to bear the debt thanks to its economic strength and the status of the dollar, but the upward trend poses a real future challenge.