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To: Broken_Clock who wrote (24236)	6/16/1998 2:16:00 PM
From: Flan	Respond to of 95453

Papa - The issue is not debt outstanding but rather Debt as a percentage of GNP or GDP if you want to be more precise. Yes the US is the largest debtor nation in the world but that does not necessarily translate into trouble for the US. US debt to GDP is still significantly below countries such as Japan which last time I looked was close to 70%. That is significant... US ratio continues to rise which is not good but we are not even close to the trouble that countries like Japan, Korea etc are in. As debt as a percentage of GDP continues to rise it is significantly alters the BOP. (Balance of Paymnents deficits paid for through foreign direct investment FDI can be devastating - Look what happened at Korea which had huge amounts of US dollar denominated debt as % of GDP. When economy softened and currency weakened, interest payments became overwhelming - US is far from that....