US Owes Trillions in Debt to Foreign Countries; Top Creditors Sell Off Treasuries Amid Economic Uncertainty
-
The US government owes $7.4 trillion in Treasury securities to foreign countries like Japan and China, who are top owners of US debt.
-
During the pandemic, private investors and countries like Saudi Arabia, China, and Brazil sold some US Treasurys amid need for liquidity.
-
With central banks globally keeping interest rates high to curb inflation, borrowing is getting costlier which could risk defaults.
-
Using January 2023 data from the US Treasury, the top 20 countries owing the US money are listed, starting with Bermuda at $77.4 billion.
-
The top 5 debtors to the US are the Cayman Islands ($285.3 billion), Switzerland ($290.5 billion), Ireland ($253.4 billion), Canada ($254.1 billion), and the UK ($317.6 billion).