The United States’ national debt has surged to nearly $36 trillion, making it a cornerstone of the global financial system.
US Treasury bonds are widely held by governments, financial institutions, and investors worldwide, serving as a critical benchmark for global markets.
However, recent comments by President Donald Trump have sparked discussions about the actual size of US debt.
Trump suggested that potential fraud in Treasury debt payments might mean the country’s debt is lower than officially reported.
Trump’s comments on US debt and Treasury payments
Speaking to reporters aboard Air Force One, Trump said his administration was investigating Treasury debt payments for possible irregularities.
He implied that some of the reported debt might be fraudulent, stating:
We’re even looking at Treasuries. There could be a problem – you’ve been reading about that, with Treasuries, and that could be an interesting problem.
Trump further added:
It could be that a lot of those things don’t count. In other words, some of that stuff that we’re finding is very fraudulent, therefore maybe we have less debt than we thought.
His remarks come amid a broader effort led by Elon Musk, whom Trump tasked with overhauling government efficiency.
Musk’s initiatives have sparked controversy, with concerns over privacy, security, and disruptions to federal agency operations.
A federal judge recently blocked Musk’s team from accessing government payment systems, citing risks of exposing sensitive information.
This raises questions about what actions might follow regarding US Treasuries and debt restructuring.
Who owns the US debt?
The national debt is divided into two broad categories:
Public debt – Debt held by foreign governments, financial institutions, and individual investors.
Intragovernmental holdings – Debt owed to US government agencies like Social Security.
| Owner | Holding Size (USD) |
|---|---|
| US Federal Reserve System | $4.7 trillion |
| Social Security and other US agencies | $2.4 trillion |
| Foreign investors | $8.7 trillion |
| US investors and other US holders | $19.7 trillion |
Foreign investors hold significant US debt, with countries such as Japan, China, and Britain among the largest holders.
| Country/Region | Holding Size (USD) |
|---|---|
| Japan | $1,099 billion |
| China | $768.6 billion |
| Britain | $765.6 billion |
| Luxembourg | $424.5 billion |
| Cayman Islands | $397 billion |
| Canada | $374.4 billion |
| Belgium | $361.3 billion |
| Ireland | $338.1 billion |
| France | $332.5 billion |
| Switzerland | $300.6 billion |
| Taiwan | $286.9 billion |
| Singapore | $257.7 billion |
| Hong Kong | $255.7 billion |
| India | $234 billion |
| Brazil | $229 billion |
| Norway | $159 billion |
| Saudi Arabia | $135.6 billion |
| South Korea | $127.8 billion |
| Mexico | $100.8 billion |
| Germany | $97.7 billion |
| Rest of World | $1,589 billion |
Source: Reuters
The US Treasury Department compiles foreign ownership data monthly, but it acknowledges that due to the role of financial intermediaries, exact ownership figures may not always be precise.
The total US national debt has reached $35.5 trillion and continues to grow due to persistent fiscal deficits and increased government spending.
As the debt rises, questions about long-term sustainability and potential economic risks remain critical for policymakers and investors.
The large-scale holding of US debt by foreign nations reflects the confidence in US Treasuries as a secure investment.
However, a heavy reliance on foreign investors also means that shifts in global economic conditions or geopolitical tensions could impact the demand for US debt, influencing interest rates and financial stability.
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