US national debt tops $40 trillion for 1st time ever
The US just crossed a major financial line: national debt has topped $40 trillion for the first time ever.
That's about 124% of America's total economic output, and if you break it down, it works out to roughly $117,000 owed per person or nearly $297,000 per household.
The main reason? Decades of deficits and recent policy-driven borrowing have made the debt pile larger, while rising interest rates have made debt servicing more expensive, outpacing how fast the economy is growing.
Four-fifths of US debt owned domestically
Of the $40 trillion total, about $7.78 trillion is money the government owes itself.
The rest, $32.27 trillion, is held by the public: 57% by US investors like mutual funds and pension funds, 14% by the Federal Reserve, and 29% ($9.35 trillion) by foreign investors.
Japan leads among foreign holders with $1.21 trillion, followed by the UK and China.
But despite what you might hear online, roughly four-fifths of all US debt is actually owned right here at home.