The US is now buried in $40T of debt — but who’s buying the IOUs right now? Here’s the unsettling answer for Americans

The United States now carries an inconceivable $40 trillion in debt, a figure that grew by about $40 trillion every 100 days. In the past, foreign governments like Japan and China were the main buyers of this debt, but their influence has diminished. Foreign governments now hold only about 12% of outstanding Treasuries, a drop from nearly 40% in the early 2000s.

Most of the purchasing power has shifted to American households, money-market funds, and banks. Banks have added over $65 billion in Treasury securities in the first quarter of 2026 alone. This change in ownership structure exposes a vulnerability, as these domestic buyers can suddenly cease buying and unwind their positions. The Federal Reserve is also becoming a larger buyer of Treasuries, a move that could potentially lead to inflation if it continues.

Despite these concerns, investors like Ray Dalio advocate for diversification and recommend gold as a hedge against inflation, which has soared 152% over the past five years.