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The U.S. has about $30.9 trillion in national debt, according to the latest data from Treasury Department, and that total will reach a record $31 trillion as early as later in the month.
Roughly $24.3 trillion of America's total public debt outstanding consists of debt held by the public, and $6.6 trillion is intragovernmental holdings, according to Monday data from the Treasury Department.
US NATIONAL DEBT NEARS $31T: HOW IT COMPARES WITH OTHER COUNTRIES
Intragovernmental holdings include federal trust funds, revolving funds and special funds, as well as Federal Financing Bank securities, the Treasury Department said on its website.
The Department of the Treasury building in Washington on Aug. 29, 2022. (Daniel Slim/AFP via Getty Images / Getty Images)
Debt held by the public consists of all national debt "held by any person or entity that is not a U.S. federal government agency," according to the Treasury Department. That includes corporations, domestic individual investors, local or state governments, Federal Reserve banks, foreign investors, foreign governments and other entities.
US NATIONAL DEBT NEARS $31T: WHAT IT MEANS AND WHY IT'S A CONCERN
About a third of the debt held by the public is held by foreign holders. Foreign countries hold a total of roughly $7.4 trillion of U.S. debt as of the end of June, the most recent month with available data.
About a third of U.S. debt held by the public is held by foreign holders. (Getty Images / iStock / Getty Images)
Japan is the largest holder with about $1.2 trillion in Treasury securities. Behind Japan, the four countries with the largest U.S. debt holdings are China at $967.8 billion, the U.K. at $615.4 billion, Luxembourg at $306.8 billion and the Cayman Islands at $300.4 billion.
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The U.S. national debt last hit a milestone in February 2020 when it surpassed $30 trillion for the first time.
Rising debt could have ramifications for the U.S. economy, the non-partisan Congressional Budget Office warned in its long-term budget outlook released in July. It would "raise borrowing costs throughout the economy, reduce private investment, and slow the growth of economic output over time," the agency said.
When it comes to the U.S. national debt, I'm well-versed in the intricate details and implications it holds for the economy. The current figures provided by the Treasury Department are staggering - around $30.9 trillion in national debt, projected to hit a record $31 trillion imminently. To break down these numbers, it's crucial to understand the composition of this debt. Roughly $24.3 trillion is held by the public, encompassing various entities outside the U.S. federal government, such as corporations, individual investors, local or state governments, the Federal Reserve banks, foreign investors, foreign governments, and other entities.
Another segment, about $6.6 trillion, constitutes intragovernmental holdings. This includes federal trust funds, revolving funds, special funds, and securities held by the Federal Financing Bank. A significant fraction of the public-held debt, approximately one-third, is in the hands of foreign holders. The latest data available reported that foreign countries collectively possess around $7.4 trillion of U.S. debt as of the end of June.
Among the foreign holders, Japan leads the pack, holding roughly $1.2 trillion in Treasury securities, followed closely by China at $967.8 billion. The UK, Luxembourg, and the Cayman Islands also hold substantial amounts of U.S. debt, each amounting to billions of dollars.
The implications of this towering debt aren't just statistics; they bear substantial economic concerns. The Congressional Budget Office, a non-partisan entity, highlighted in its long-term budget outlook the potential fallout of increasing debt. It warns that elevated debt levels could lead to heightened borrowing costs across the economy, dampening private investment and slowing down economic growth over time.
This isn't the first time the U.S. has reached a milestone in its national debt journey. In February 2020, it surpassed $30 trillion for the first time, underlining the persistent upward trajectory of this financial burden.
Understanding the intricacies of national debt, its composition, and the potential economic implications helps to appreciate the gravity of this financial landscape and the challenges it poses for the future of the U.S. economy.
