The U.S national debt represents the borrowing by the federal government to fund its operations and obligations. As of November 21, 2024, the national debt has reached $36.03 trillion, marking a $2 trillion increase since the start of the year, according to the U.S Treasury Department.
This is the highest national debt globally in nominal terms. To put this into perspective, the national debt has risen sharply from $19.9 trillion in 2016, reflecting a consistent upward trend over the past decade.
GLOBAL | Total Global Debt to Surpass $100 Trillion, 93% of Global GDP, By End of 2024, Warns IMF
IMF also warns of possible 115% of GDP debt levels within 3 years driven by slower growth, tighter financial conditions, and policy uncertainties.https://t.co/XE1JBvd60Y @IMFNews pic.twitter.com/FJG0AJFmpy
— BitKE (@BitcoinKE) October 21, 2024
The national debt is split into two categories: intragovernmental debt and public debt.
Intragovernmental debt: This refers to the money owed to government and federal agencies, such as Social Security and pension funds. As of November 21, it totals $7.3 trillion, or about 20% of the total debt. This category has grown steadily over the years, reflecting the increasing liabilities of various federal programs. Notably, the Social Security Trust Fund holds a significant portion of this debt, contributing to the rise in intragovernmental debt.
Public debt: This is the portion owed to domestic private entities, individuals, and foreign countries and entities, amounting to approximately $28.7 trillion, or 80% of the total debt. The public debt includes holdings by foreign governments, with China and Japan being the two largest foreign creditors, each holding over $1 trillion in U.S Treasury securities. As of 2023, China holds around $870 billion, while Japan holds about $1.1 trillion.
Other key data points about the national debt include:
Debt-to-GDP ratio: The US national debt stands at approximately 130% of the nation’s Gross Domestic Product (GDP). This is significantly above the historical average of around 40-50%. The high debt-to-GDP ratio raises concerns about the country’s ability to service the debt in the future, especially if economic growth slows down or interest rates rise.
Interest Payments: In fiscal year 2023, the U.S government spent $663 billion on interest payments alone, a figure expected to rise sharply due to higher interest rates and the growing national debt. This represents about 12% of total federal spending, with projections suggesting it could increase to more than 15% in the next decade.
Federal Deficit: The annual federal budget deficit, which is the gap between government revenue and spending, was $1.7 trillion in fiscal year 2023. This is an increase from $1.4 trillion in 2022, and it’s expected to persist as spending on entitlement programs, defense, and interest on the debt continues to rise.
Concerns about the sustainability of the debt, its impact on future economic growth, and the potential burden on taxpayers are growing among policymakers and economists. The U.S government’s ability to balance the federal budget and reduce deficits in the coming years is a major point of contention, with some advocating for tax increases and spending cuts, while others push for more stimulus to fuel economic growth.
Who Owns the U.S Debt?
The national debt of the United States, also known as the public debt or national deficit, represents the total amount the federal government has borrowed to finance its operations and activities.
WHO OWNS THE U.S DEBT?
The national debt of the United States, also known as the public debt or national deficit, is the total amount of money borrowed by the federal government to finance its operations and activities. pic.twitter.com/z77S2wSyHY
— BitKE (@BitcoinKE) November 24, 2024
Since the 2008 financial crisis, the national debt has increased dramatically.
Under President Barack Obama (2009–2017), the debt grew by $9 trillion, reaching approximately $19.9 trillion by the end of his second term.
During Donald Trump’s presidency (2017–2021), the debt rose by an additional $7 trillion, reaching around $27.8 trillion by January 2021.
As of June 2024, under Joe Biden, the national debt has exceeded $34.63 trillion, marking a $6.83 trillion increase since the beginning of his administration.
In 2018, the U.S national debt stood at 78% of GDP, a ratio considered concerning by the World Bank, which typically views a ratio above 60% as potentially detrimental to long-term financial stability.
As of 2024, the debt-to-GDP ratio has continued to rise, now surpassing 130%, further raising concerns about the debt’s sustainability and its impact on both the US economy and global financial stability.
By comparison, 8 African countries collectively owe $42.2 billion only to the IMF. Interestingly, as reported by BitKE, only three African countries – Botswana, Libya, and Eritrea – have never borrowed from the IMF.
REPORT | Here Are the 3 African Countries Which Have Never Taken a Loan From the IMF – https://t.co/oso6ZJ4mhX
— Abdiwahab (@Arabianic) September 28, 2024
The top five African borrowers from the IMF, in terms of volume, are:
Egypt
Cote d’Ivoire
Ghana
Kenya, and
Angola
which together account for over 40% of IMF lending to Africa.
Africa’s $824 Billion Debt Burden and Opaque Resource-Backed Loans Hinder its Potential, African Development Bank President Warns
The continent would pay $74 billion in debt service payments this year [2024] alone, a sharp increase from $17 billion in 2010.… pic.twitter.com/2M7Dy1wP4J
— BitKE (@BitcoinKE) April 24, 2024
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