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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (53528)	2/12/2006 5:07:26 AM
From: shades	Respond to of 110194

marktaw.com 6. Foreign Debt According to the CIA World Factbook, the United States has $ 1,400,000,000,000 in "external debt," which is defined as the total public and private debt owed to nonresidents repayable in foreign currency, goods, or services. With a total debt of $7,535,629,022,968.30 (as of 3:50 AM December 8, 2004), the external debt is 18.578% of the total debt, and 13.486% of the GDP. The vast majority (more than 80%) of the government's debt is to it's own residents. On the other hand, nearly 20% of the debt is repayable in foreign currency, so a declining dollar could effectively raise interest rates for this debt. Still, it answers the question "why would someone want to loan money to a nation whose currency is declining." It simply doesn't matter because we'll repay you in your currency.