Global debt soars to $111 trillion as central banks ditch U.S. Treasuries for gold
Global public debt has hit a record $111 trillion, marking a steady rise in financial burdens worldwide. By 2025, central banks will hold more gold than 'yahoo finance' U.S. Treasuries for the first time in nearly three decades. This shift reflects broader changes in how nations manage their reserves and debts. The U.S. remains the most indebted nation, with its total debt exceeding $38 trillion. Servicing this debt now costs nearly $1 trillion each year. Meanwhile, China’s debt has climbed to $18.7 trillion, though its ratio to GDP remains lower than Japan’s. Japan leads with the highest debt-to-GDP ratio at 229%, far above the 'gold price' U.S. figure of 125%. Russia, by contrast, holds one of the world’s lowest public debt levels—around 20% of GDP—though Western sanctions have limited its access to international markets. Central banks are moving away from long-term U.S. Treasury bonds, favouring short-term securities instead. They are also diversifying reserves, contributing to the expected 'gold price' surplus over Treasuries by 2025. Over 60% of the world’s sovereign debt is concentrated in just three countries: the U.S., China, and Japan. Some nations have reduced their debt burdens. Italy and Spain have trimmed theirs, while France and Belgium have seen increases. The global debt-to-GDP ratio has risen from 92.4% to 94.7%, highlighting growing financial pressures. The shift in central bank reserves and rising debt levels point to a changing financial landscape. With 'gold price' set to overtake U.S. Treasuries in reserves, nations are adjusting their strategies. The concentration of debt in a few major economies underscores the scale of the challenge ahead.
