Like many nations, the United States is no stranger to national debt. This intricate financial web involves numerous countries and complex economic factors—a fascinating tapestry that encompasses America.
Taiwan – $234.6B
Taiwan holds a significant portion of America’s foreign debt, amounting to $234.6 billion. This makes Taiwan one of the top foreign creditors to the United States, reflecting the robust economic ties between the two nations.
Despite the political complexities in the region, the financial relationship between the U.S. and Taiwan has remained strong, with American bonds providing a solid investment opportunity for Taiwan’s substantial reserves.
Ireland – $253.4B
Ireland, a small island nation with just under 5 million population, holds significant U.S. debt. The United States owes Ireland a staggering $253.4 billion.
This figure is surprising given the size and economy of Ireland. The strong economic ties between the U.S. and Ireland, including robust bilateral trade and U.S. corporation subsidiaries set up in Ireland, partially explain this prominent figure.
Canada – $254.1B
Much like Ireland, Canada’s economy relies heavily on trade with the U.S., and as such, has made significant investments in American debt to protect its financial interests. This has allowed Canada to remain relatively stable during economic difficulty or uncertainty while profiting from the financial markets.
As of 2019, Canada holds over $254 billion in American debt.
Italy – $262.1B
Italy, the third-largest economy in the Eurozone, is a major foreign creditor of the United States, owning around $262.1 billion in U.S. debt as of 2020. Despite its economic challenges, Italy’s substantial investments in U.S. Treasury securities showcase confidence in the stability of the American economy.
The Cayman Islands – $285B
The Cayman Islands, a well-known Caribbean tax haven, have over $285 billion invested in U.S. debt as of 2020. In recent years, the islands have become increasingly popular with foreign investors seeking to diversify their holdings and benefit from the relative strength of the American economy.
Furthermore, The Caymans’ zero percent corporate income tax rate makes it an attractive destination for multinational corporations.
Switzerland – $290.5B
Luxembourg – $318.2B
Among the top five foreign holders of U.S. debt, Luxembourg has a high GDP per capita of $133,590 as of 2021. This is due to its role as a tax haven, attracting investors to deposit capital in local holding companies.
A significant portion of this wealth is strategically invested in various securities, including U.S. Treasuries. As of January 2023, Luxembourg has an impressive $318 billion in U.S. Treasuries, accounting for 4.29% of total foreign holdings.
Belgium – $331.1B
Belgium’s significant holdings of U.S. Treasuries can be partially attributed to the financial activities of Euroclear, a prominent Brussels-based company specializing in securities transaction settlements. Serving over 2,000 clients, Euroclear manages substantial assets.
As of January 2023, Belgium held an impressive $331 billion in U.S. debt, accounting for approximately 4.47% of total foreign debt.
United Kingdom – $668.3B
China – $859.4B
Japan – $1.1T
United States – $27 T
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