But Japan's debt is different. It's mostly owed to the Japanese people in the form of government bonds. The Japanese government owes each of its citizens about 7.5 million yen. Since 95% of its debt is held domestically, its economy is not as precarious as it would be if it were debt to foreign countries.
For many in Japan's big-spending camp, two related points undergird the view that the debt isn't what it seems. First, it is entirely denominated in Japan's own currency, the yen. Second, about half of it is owned by the central bank, part of the same government issuing the debt in the first place.
As of July 2020, Japan overtook China and became the largest foreign debt collector for the U.S. The United States currently owes Japan about $1.2 trillion according to the U.S. Treasury report.
The increase in Japan's holdings is its largest since 2013. The low and negative yield market in Japan makes holding U.S. debt more attractive. Japan now makes 18% of foreign-owned U.S. debt.
Brunei is one of the countries with the lowest debt. It has a debt to GDP ratio of 2.46 percent among a population of 439,000 people, which makes it the world's country with the lowest debt. Brunei is a very small country located in southeast Asia.
Djibouti, Laos, Zambia and Kyrgyzstan have debts to China equivalent to at least 20% of their annual GDP. Much of the debt owed to China relates to large infrastructure projects like roads, railways and ports, and also to the mining and energy industry, under President Xi Jinping's Belt and Road Initiative.
This national bond is called renewal national bond. As a result of issuing these bonds, the debt is not actually repaid, and the amount of bonds issued continued to grow. Japan has continued to issue bonds to cover the debt since the asset price bubble collapse.
Foreign holders of United States treasury debt
Of the total 7.55 trillion held by foreign countries, Japan and Mainland China held the greatest portions. China held 1.05 trillion U.S. dollars in U.S. securities. Japan held 1.3 trillion U.S. dollars worth.
China has steadily accumulated U.S. Treasury securities over the last few decades. As of October 2021, the Asian nation owns $1.065 trillion, or about 3.68%, of the $28.9 trillion U.S. national debt, which is more than any other foreign country except Japan.
The shape and location of Japan is gradually transformed by plate movements. However, Japan is generally not sinking. In fact, its mountains are becoming higher as these plates crush together.
Breaking Down Ownership of US Debt
China owns about $1.1 trillion in U.S. debt, or a bit more than the amount Japan owns. Whether you're an American retiree or a Chinese bank, American debt is considered a sound investment. The Chinese yuan, like the currencies of many nations, is tied to the U.S. dollar.
Japan's 2020 census recorded a population decline of 800,000 people, a year later the percentage of its population under age 14 had fallen to its lowest level ever - just 11 percent.
In the long-term, the Russia Government Debt to GDP is projected to trend around 17.90 percent of GDP in 2022 and 17.50 percent of GDP in 2023, according to our econometric models.
Outstanding government debt ballooned from 8.2 trillion pesos in 2019 to 10.2 trillion pesos in 2020 as the state ran big deficits to battle the pandemic. Through the first three quarters of 2021, government debt has increased again to 11.9 trillion pesos.
Foreign holdings
Including both private and public debt holders, the top three December 2020 national holders of American public debt are Japan ($1.2 trillion or 17.7%), China ($1.1 trillion or 15.2%), and the United Kingdom ($0.4 trillion or 6.2%).
The World Bank gets its funding from rich countries, as well as from the issuance of bonds on the world's capital markets. The World Bank serves two mandates: To end extreme poverty, by reducing the share of the global population that lives in extreme poverty to 3% by 2030.
Jerome Kerviel: The most indebted person in the world, owes $4.9 billion.
Every country issues debt, however some nations lend more debt to other nations than they owe. See the charts below from financialranks (sourced from IMF) for the world's largest creditor and debtor nations. As you can see, China, for example, lends far more to other nations than it borrows.