#USNationalDebt The U.S. National Debt refers to the total amount of money the federal government owes to creditors. It is a result of the government borrowing to fund deficits—that is, when annual spending exceeds revenue.

📊 Key Facts:

°As of mid-2025, the U.S. national debt is over $34.5 trillion.

•The debt is mainly held in two forms:

°Public Debt (held by individuals, institutions, and foreign governments)

°Intragovernmental Holdings (money the government owes itself, e.g., Social Security trust funds)

📉 Why It Matters:

°Interest Payments: The government must pay interest on this debt, which now consumes a significant portion of the federal budget.

°Inflation & Credit Risk: High debt levels can affect inflation and impact the U.S. credit rating.

°Economic Growth: Long-term debt growth can crowd out private investment, slowing economic growth.

🇨🇳 Who Owns the Debt?

Top foreign holders include:

°Japan

°China

°United Kingdom

🧮 How It Grows:

°Budget Deficits: When spending > tax revenue

°Emergency Spending: e.g., COVID-19 stimulus, wars, bailouts

°Tax Cuts and mandatory programs like Social Security and Medicare

🔔 Current Concern: Rising interest rates make borrowing more expensive, pushing annual debt interest payments past $1 trillion, sparking political and economic debate.