If Every Country Is in Debt… Who’s the Creditor?

Have you ever wondered how every country on Earth can be in debt at the same time? With a staggering $315 trillion in global debt, it seems mathematically impossible—yet only five nations (Japan, Germany, China, Switzerland, and Norway) hold more wealth than they owe. This mind-bending financial paradox reveals a shocking truth about who really holds the world's debt and why even creditor nations like Japan can simultaneously have massive debt-to-GDP ratios. In this video, we unravel the complex web of international finance to explain how debt isn't physical money but rather a system of promises and IOUs. You'll discover why countries can owe money to each other in circular patterns, how government bonds create this interconnected debt network, and the surprising answer to who ultimately holds these trillions in global debt. From the US's $18.1 trillion deficit to Japan's $3.3 trillion surplus, we break down the numbers that shape our global economy and reveal why this system might be more stable than it appears.