What is the u.s. foreign debt?
The United States’ foreign debt relies on loans from many countries to keep the American economy, the largest in the world, afloat. While financial writer John Cassidy at Portfolio.com claims that gross national product is at $13.6 trillion, American foreign debt is quickly catching up.American CreditorsCurrently, China and Japan are the top creditors of the U.S., followed by major oil exporters in the Middle East and South America. At the bottom of the U.S. Treasury Department’s list are the Philippines and Malaysia.Vendor LendingThe link between lending and spending is called “Vendor Lending.” According to Cassidy, Asian markets are eager to lend because Americans buy so many Asian products, like cars and electronics, which give the countries that produce those exports incentive to see Americans continue to buy.SignificanceA visual representation at Kiplinger.com claims the current U.S. foreign debt is larger than the debt of the rest of the countries in the Western hemisphere, combi
