When we say the U.S. has a certain amount of debt... ???

Question

who does the country actually "OWE" the money to? Itself? Other countries (why would they allow the U.S. to owe them so much?)? The taxpayers? I've always wondered... THANKS!

Answer 1

You are correct, and we are FAR from a nation in debt.

It's like looking at your car's fluid level and saying: "Look, we're almost out of gas!" until someone says: "That's the windshield wiper fluid".

It's just silly and misleading.

Answer 2

The US buys and sells from and to other countries.

When Bush took over the Presidency the US had a trade surplus of some 230 BILLION dollars meaning that the country sold more than it bought.

After 8 years of Bush and his brilliant economic and military policies,the US now has a trade deficit of some 230 BILLION dollars and rising.

If that was a commercial business they would be bankrupt.

Answer 3

What debts?

What's wrong having credit cards?

Isn't it the life-style of the rich and famous?

Since little children love to sign without permission from parents?

That should be fine?

Don't you think?

Luke 6.39-40,41-45,46-49

What do you think?

Answer 4

When they say the country is in debt, it means the government is spending more money than it received in taxes.  The short fall of funds is made up by issuing TreasuryBonds and Notes.  The government gets cash for selling these T-bonds and T-notes but must pay them back in 10 years with interest.

So future tax payers will have to pay for these instruments when they come due.

Answer 5

I dont know much about the debt but I think I can answer why you are allowed to be in debt ALL RICH COUNTRIES FIND COVENIENT TO HAVE NATIONS THAT OWE THEM, you are VERY rarely going to find a nation using a debt to declare war or something like that unless it loks for a lame excuse to do some imperialistic expansion (like france with Mexico) WHY? it is simple USA controls much countries by debt manipulations and of course throught terror by their imperialistic military system but the second is like "the hidden form" they rule more by economy, see if a nation owes you muuuch money and especially if the nations are like in the same power level you have that nation more or less in your shoes you want something to be supported by a country or something simply you just open your debt book and see what nations owe you and then you "gently" ask them to "support you" in certain things war etc. and you remind them of a large debt and offer some "favors in the bills" or more time or simply preassure it and they will "gladly" help you that nation ask you more money but you never tell "no, you owe me already" no, you lend more so the debt is bigger and your influence over them is bigger too. The terror method unlike the other one gives you complete control obiously unlike the economic manipulation that gives you influence more than control sometimes a kind of influence that this nation becomes your unoficial protectorade. USA and other coutries rather to contol other by the shadows and exert they influence that botherng in moving their armies.

Answer 6

The U.S. borrows money from other countries through securities, we sell them, they buy them. Why would other countries allow the U.S. to borrow so much? Through the selling of bonds, the U.S. guarantees that it will pay the amount it bothered, and the type of bond soled depends on the amount of time it will pay that loan, and the borrower will be making interest so the borrower wins. Taxpayers can pay it off by increasing taxes. Right now we owe China an enormous amount of money, so much that if they were to sell our bonds (that they own), our country would be in disaster, people say China wont do it because China relies heavily on the U.S, but its an action anyone would take to bring down an enemy.

Answer 7

There are several different debts.  Some have been mentioned above.

Trade Deficit:  This means we buy more form other countries then we sell to them.  

Consumer debt.  This is often not counted but it's the amount that consumers in the US owe to banks.

National Debt:  This is where we sell bonds to another country and they give us cash to spend.  Its one of the big ones.

Budget Surplus/deficit :  I am mentioning this because it is misunderstood by many.  Bush inherited a Budget surplus which means we budgeted our national expenses to less then we made in income. More money was being saved to pay other debts.  Now we have a budget deficit which means we spend more then we make with taxes, tariffs, and other sources of income and to fund all of our government programs we must borrow additional funds. This isn't a debt but it causes debt by making us borrow.

Last and possibly biggest (I am honestly not sure) is the FED.  We borrow money form the Federal Reserve System which is a private organization of Bankers that actually determine how much money we can have in circulation and loan us the money to operate. I am not entirely sure how it works because there are many conflicting stories about it and I honestly don't know which is true.