American Debt - to whom???

Question

watching a programme last night (Boston Legal , love it!) USA give something like 7 billion to world aid and yet is 3 TRILLION in debt but who are they in Debt to?? UK is the same talk about NAtional Debt do they all have full Visa cards or what Who is owed all this money and where did they get it from to lend!??

Answer 1

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Answer 2

The debt was created long ago, and keeps escalating, America buys 1 Dollar, but that Dollar cost's 1.5 Dollar's. So the debt is ever mounting. Watch Zeitgeist, it talks about it on there.

Answer 3

Mainly the Far East, who buy US Government bonds to keep the spending party going. If I lend you a dollar, you have a problem, but if I lend you a billion dollars, I have a problem. In other words, the US owe foreigners so much, it is the foreigners who have the problem and dare not pull the plug. Moreover, they demand ever higher interest rates for holding a depreciating dollar. I don't think these debts will ever be repaid. So, the US has successfully exported its debt problem.

Answer 4

Actually bonds ARE taxed by the feds, they aren't taxed by State and Local Govts. Well I should say the INTEREST is taxed, not the bond purchase. Look up I Bonds and EE Bonds. Now maybe there is some other type that isn't, but not sure. Anyway anyone could buy either of those types of bonds as long as they had the money. As I understand it though most of our debt is actually owned by the Chinese. As to where we get the money it is called inflation. The Govt prints money at it's owe choice. They can print as much or as little as they want. So they want more money they print more. Then they borrow money from places to keep the inflation from devaluing the dollar too much. With so many people holding bonds and basing currency on the dollar these people are willing to help the U.S. from having the dollar fall too much.  

Answer 5

The US federal government periodically sells bonds.  Those are generally Treasury bonds. They are bought by banks, mutual funds and individual investors.  Your parents probably have some exposure to US debt in their retirement savings.  A bond is a debt contract, a loan contract, to be paid either on maturity or periodically.

Banks in the US hold many of the bonds.  Corporations often hold those bonds. Investors overseas also hold those bonds.  Even foreign governments hold those bonds.  They are considered an excellent investment because it is extremely unlikely that the US will fail to pay.

One advantage of treasury bonds is that they are free from US federal income tax.

Answer 6

Good question,they probably owe it to iraq and afghanistan thats why they decided to invade