After the recent agreement that prevented US government institutions from entering into shutdown, expectations are certain that American debt is likely to rise further in the coming days.
Today, the US debt limit is $33 trillion, and the top 10 list of countries providing credit to the US debt comes with Japan ranks first, followed by China and the United Kingdom.
Japan owns the largest share of US debt at about $1.112 trillion, followed by China with $821 billion, and then the United Kingdom, Luxembourg, and Belgium, with about $662, 349, and $318 billion, respectively.
The types of US debt are classified into internal government debt and public debt.
Domestic debt is held by US federal agencies and organizations and constitutes about one-fifth of all outstanding US debt.
This debt includes money owed to Social Security, military retirement funds, Medicare, and other retirement funds.
As for public debt, a large portion of it is owned by foreign governments, and the rest is owned by US banks, individual investors, the US Federal Reserve, states and local governments, mutual funds, pension funds, insurance companies, and savings bond holders.
The US national debt has risen significantly recently, in part because the government continues to spend at rates that exceed the revenues it receives.
The global Covid pandemic has caused a significant increase in the US federal debt, as the government was forced to increase spending to stimulate the economy and support families and businesses, not forgetting to mention the huge amount of dollars, $4.5 trillion that were printed.
For these reasons, the national debt has risen significantly since the beginning of the pandemic.
Projections indicate that the US public debt will continue to rise in the future, as it is expected to reach a very high percentage of GDP by 2053.
This rise includes an increase in spending and a decline in revenues, making controlling the national debt an ongoing challenge for the US government.