US mostly in debt with own citizens

The US national debt of USD 14.3 trillion mostly belongs to the US citizens themselves, as America's debt to foreign countries accounts for only one third of the total figure.


Most of the US debt, more than 75 percent of it, is owned by the US citizens, and includes massive savings in the form of government holdings that account for domestic programs such as Social Security and Medicare, DPA reported.

Other big holders of the US debt include local and state governments, individual investors, banks and credit unions owning a total of USD 1.2 trillion.

Thus, contrary to public belief, only USD 4.5 trillion of the US foreign debt is owned by foreign states.

America's foreign debt is predominantly owned by Asian countries, with China being the biggest owner of US Treasury bonds worth USD 1.2 trillion.

Taiwan and Hong Kong rank next, seeking an overall of USD 276 billion from the US government.

Compared with Asia, European countries own less US treasury bonds. The United Kingdom holds USD 346 billion, and Switzerland, USD 108 billion of the US foreign debt.

Some of the Organization of the Petroleum Exporting Countries (OPEC) member states hold around USD 230 billion of the US foreign debt.

The US debt ceiling is capped at USD 14.3 trillion, up from USD 10.6 trillion when President Obama took office in 2009, and the administration says that if this ceiling is not elevated by August 2, the government will default on its obligations.