Debt? To Who?

[crossnote]

It is said the U.S. is about 34 Trillion in debt. Other countries also have sizable debts too.
I was a slacker when it came to economics, (even though I had a knack for math), but can someone explain to me, who is the US in debt to? How does that work?

 

[bobinfaith]

Hello crossnote;

Back in my accounting class days the USA was in debt then, but not as deep as today.

There are 3 fundamental main factors.

1. We are in debt to a list of other countries. We borrow from them and they borrow from us.

2. We are in debt internally to ourselves among 50 states. This will take a long explanation but what one state has in value is another state's need so we make deals between states.

3. We are printing money we don't have and its not backed by gold. The economists theory is we are so deep it gets lost in the abyss as long as America isn't led to bankruptcy.

Imagine, this American debt ratio has been going on for the last century and a half and has only risen.

Debt in the mindset of America is healthy because we build up a line of credit and trust (borrowing power) between countries. There's an old saying, America was built on credit.

 

[BibleLover]

Hello crossnote;

Back in my accounting class days the USA was in debt then, but not as deep as today.

There are 3 fundamental main factors.

1. We are in debt to a list of other countries. We borrow from them and they borrow from us.

2. We are in debt internally to ourselves among 50 states. This will take a long explanation but what one state has in value is another state's need so we make deals between states.

3. We are printing money we don't have and its not backed by gold. The economists theory is we are so deep it gets lost in the abyss as long as America isn't led to bankruptcy.

Imagine, this American debt ratio has been going on for the last century and a half and has only risen.

Debt in the mindset of America is healthy because we build up a line of credit and trust (borrowing power) between countries. There's an old saying, America was built on credit.

There's another debtor. Holders of U.S. Savings Bonds.

 

[BibleLover]

There's another debtor. Holders of U.S. Savings Bonds.

My post should have indicated that the bond holders are creditors, not debtors. Forgive the brain flatulation.