How does usa manage to be rich, have enough to still give out to others,does it mean we dont owe any one?

Question

wat are the secrets that make USA never to lack even when times are hard?

Answer 1

HAHAHA>

Not.

We are trillions in dollars in debt to other countries especially china.

I MEAN TRILLIONS. Real ones.

It's just a facade that we put in, as the "We are the democratic super power of the world".

LOL

Answer 2

The governement cannot simply print more money. This would increase the money supply and lead to rampant inflation, meaning prices would shoot way up.

I'm not a big fan of wikipedia as a primary source, but this about sums it up:

http://en.wikipedia.org/wiki/United_Stat...

The United States, like many (most?) countries, is currently in debt. In fact, if wikipedia's sources are correct, it ahas always been in debt in some way or another. This is probably also the case for most countries (this is speculation on my part however).

The section in the article labelled Foreign owners of US Treasury Securities (April 2008) is how much each country has bought in US Treasury Securities (which the US sells to raise capital, but must pay back: it's  a debt instrument). For example, if wikipedia is to be believed, Canada will have 24 billion dollars woth of money (principal and interest presumably on the securities). Put another way, the US will at some point repay Canada 24 billion dollars.

As for the US never lacking when times are hard, personally I don't know how accurate that would be. For example, I am very comfortable knowing that I will always have heath care so long as I pay taxes in my country, so when times are hard there are still certain services available to me. I've notice a lot of questions about health insurance woes on Y!Answers recently, so I think people in the US absolutely lack/suffer when times are hard.

And if I knew why the US was rich, well, I'd bottle it and sell it (for a dollar to developing countries, of course!). In my limited and mainly second hand experiences with the third world via news reports and www.uncultured.com, I think a relatively low amount of corruption in the government probably has a lot to do with it (please note the word "relatively"...).

Good luck!

Answer 3

we owe lots of countries money, but don't worry.  we can print as many dollars as we want.