How much of US debt has been "eaten" by foreign countries? The truth is surprising.

Recently, foreign media has been making a big fuss: $36.2 trillion of America's debt is “controlled” by foreigners. But what's the actual situation? It's not as dire as you think.

Core data slaps face:

• Foreign holders own only 24% of U.S. Treasury bonds, while Americans themselves bought 55%.
• The Federal Reserve and Social Security hold 13% and 7% respectively.
• So foreign countries have no “control” at all.

Who is buying US Treasuries? The top three are Japan (1.13 trillion), the UK (807.7 billion), and China (757.2 billion). China has been reducing its holdings in recent years, while the UK has surpassed it.

What is the impact on your wallet? In simple terms, there is basically none. Foreign purchases of US Treasury bonds mainly affect bond prices and interest rates, and will not directly impact your salary. Moreover, the US Treasury bond market is the safest and most liquid globally, and China's reduction in holdings over the years has not caused any waves.

Looking at it from another angle: American households have a net worth of 160 trillion dollars and debt of 36.2 trillion dollars, which is still a healthy ratio.