#USNationalDebt The U.S. National Debt refers to the total amount of money that the federal government owes to creditors. It is a result of the government borrowing to cover budget deficits — when annual spending exceeds revenue.
🔢 Current Snapshot (as of June 2025)
Total U.S. National Debt: Over $35 trillion
Debt-to-GDP Ratio: Approximately 123% (meaning the debt exceeds the country’s annual economic output)
Major Holders:
Public Debt (held by individuals, businesses, foreign governments): ~75%
Intragovernmental Holdings (e.g., Social Security Trust Fund): ~25%
🧾 Types of U.S. Debt
Treasury Bills, Notes, Bonds: Sold to investors with various maturity dates.
Savings Bonds: Offered to the general public.
TIPS: Treasury Inflation-Protected Securities.
🌍 Who Owns U.S. Debt?
Foreign countries: ~30% of public debt
Top foreign holders: Japan, China, UK
Federal Reserve: ~20%
U.S. individuals, banks, funds: The rest
⚠️ Why It Matters
High debt levels can lead to:
Higher interest rates
Reduced fiscal flexibility
Risk of downgraded credit rating
Concerns about long-term inflation and taxes
📈 Recent Trends
Debt surged post-2020 due to:
COVID-19 relief spending
Infrastructure investments
Rising interest costs
Interest payments alone now exceed $1 trillion annually.
🧭 Policy Debate
Some call for spending cuts or tax reforms.
Others advocate for deficit spending to support growth and investments.
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