USA’s national debt holds the largest national debt of 22 trillion in the history of the planet. Department of US treasury claims that each year approximately 1.1 trillion is adding each year. The national debt is the measurement of how much money the US government owes to its creditors. Us government always spends more money than its income so US National debt continues to rise.
History of National debt started in 1789 during the American revolutionary war. The amount of debt kept on changing expect between 1835-1836. Although, US paid all of its national debt during 1835-1836, in World War II national debt again increased rapidly. ( During Harry Truman’s period). Ronald Reagan started spending a lot in the military in 1980 as a result debt again rose during that year.
However, Jimmy Carter and Bill Clinton Managed to maintain debt as it is.
Almost 70% of the national debt is owned by the US itself, including private investors, Public people, and others. The rest of the 30% is owned by foreign countries.
China owns the highest debt of 1.18 trillion dollars to us. Here, are the top 5 countries who own Us national Debt.
Debt Ceiling is the capacity of the federal government can carry at a given time. Congress has the power to decide the debt limit. Once the debt limit is reached the US Treasury Department can not issue any bills, bonds, and notes.
In such a situation, the Treasury Department has to choose between employee salaries, Social Security benefits, or the interest on the national debt.