28th March 2026
The world's national debt stands at roughly $100 trillion. The US national debt alone is heading for $36 trillion — a third of the global total. The UK, France, and Germany each owe over $3 trillion, while Japan's debt-to-GDP ratio exceeds 200%.
Right-wing politicians constantly warn that this government debt is a burden on future generations. But who actually owns all this debt — and who benefits from it?
In this video, I explain what national debt really is: the money supply. Every pound, dollar, or euro of national debt represents currency a government has put into circulation and not yet taxed back. It is the foundation of the entire finance industry and the bedrock of private wealth. Without it, the economy could not function.
The real problem isn't the debt itself — it's who owns it. More than 80% of global debt is privately held. Pension funds are among the biggest holders, because governments are seen as reliable payers. But behind those pension funds sit the world's wealthiest people. Just 1% of the global population — roughly 80 million people — control the vast majority of this wealth. Interest payments on national debt now total an estimated $3.2 trillion a year, meaning the richest earn around $40,000 per head from interest alone, while average income for the other 99% is only $13,500. This is wealth inequality hardwired into the system — unearned income flowing from governments to the rich, funded by ordinary taxpayers.
I set out four solutions. First, interest rates on national debt must come down — they are too high. Second, unearned income from interest and government bonds needs to be taxed more heavily, not less than earnings from work. Third, we need more progressive tax systems worldwide. And fourth, the ownership of this wealth needs to be democratised, brought back under public control as it was during quantitative easing.
National debt is not a crisis. It is a transfer mechanism — and right now, it transfers wealth upwards. If you want to understand why economics works for the few and not the many, this is the video to watch. Like, subscribe, and share.
00:00 — If all countries are in debt, who are they indebted to?
01:10 — Global debt explained: $100 trillion and rising
02:20 — The USA, China, Japan and where debt is concentrated
03:30 — Why national debt is actually the money supply
04:40 — Who owns the debt: foreign vs domestic holders
05:50 — The reality: most debt is privately owned
06:50 — Pension funds, finance and the role of government bonds
08:00 — How debt underpins private wealth and financial markets
09:00 — Inequality: how interest payments benefit the richest
10:00 — Why the system concentrates wealth globally
10:50 — Solutions: lower rates, fair taxation and public control
11:20 — Conclusion: debt isn't the problem, ownership is
TRANSCRIPT
A transcript for this video is available at: https://www.taxresearch.org.uk