External debt:
Liabilities to foreigners
The gross U.S. liabilities to foreigners was
$16.3 trillion at the end 2006. Here are the main activities that lead to
increased foreign debt. When the amount of imports is larger then the amount of
exports. When there is an increase in foreign holdings of
U.S. debt instruments like government bonds. When foreigners buy more property
in the U.S. then Americans buy property overseas. When the effects of the
floating exchange rate system don't favor the U.S.
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