The USA is a country with a well-developed economy. For many people around the world, getting to America is a cherished dream. After all, the standard of living in the country is quite high, and the business sector is well developed. However, anyone who is even a little interested in events in the global economy has most likely heard that the US has huge debt. Moreover, we are talking not only about external obligations, but also about internal debt. US foreign debt today exceeded 15 trillion. dollars. This is a record amount, and it continues to increase. Today, the country's external debt is 100% higher than its GDP.
However, you should find out whether such a debt is so terrible. After all, the figure is a record only in absolute terms. But in relation to GDP, it is not so big. There are countries with less debt, which, nevertheless, is several times higher than the GDP of these countries. America’s external debt can be repaid, because the bulk of it is secured by fairly reliable securities. Formally, the United States is one of the most creditworthy states. Therefore, various rumors that the country may split and that its economy will soon fall victim to a new crisis are nothing more than rumors. There are several reasons why US foreign debt has been growing for more than two decades.
First of all, it should be noted that the import of goods in the country significantly exceeds export since 1985, which creates a negative balance. America consumes mostly goods produced in other countries. We also need to recall the debts of the private sector, interest on funds previously received by the state and a large deficit in the country's budget. All US foreign debt is denominated in dollars. Therefore, by issuing its own currency, America can theoretically repay it at any time.
However, a number of lenders are not very urgent in giving the country money. There are companies and countries among US lenders. Interestingly, the bulk of the funds was received by the United States from two states: Japan and China. The money was transferred by the United States in local currency at a very low interest. Almost the interest rate on this debt is zero. However, not everything is so simple, because not a single sensible government lends money just like that. China and Japan are no exception. Giving money in RMB and yen, they expect to get it back in US currency conversion, that is, in dollars. And since the currency of America tends to grow in price and develop, the creditor countries expect to get a good profit from their investment. As for Russia, the US external debt to it is not so great. It makes up only 3.8%. Among all the creditors of America, Russia is in eighth place.
US debt to other countries (central banks of countries) is 25% of the country's total debt. The states received most of the funds from various companies and organizations. Large firms do not mind investing in American bonds, as they are well-secured and bring decent income at an interest rate. In some places one can hear statements that the USA uses other countries as slaves. Such conclusions are drawn on the basis that the United States is the main consumer of goods in many countries. And the states consume on credit. If America suddenly refuses to import, some large companies will go bankrupt, because there will simply be nowhere to sell the goods.
The United States supports the process of production and consumption, thereby starting the development of the economy in some states. On the other hand, these countries, for obvious reasons, cannot refuse US supplies. The result is a vicious circle. America without external supplies could fall into crisis. And in this case, she can’t even pay off the debts that she already has. Thus, it is concluded that the United States attracts real goods to itself, and in return gives only promises and pieces of paper.