Every American owes foreign countries about $34,837.93

Over the past several years, Americans as well as American government enjoyed one of the best deals in international finance: borrowing trillions of dollars from abroad to buy flat-panel TVs, build homes and fight wars, but as those borrowings mounted, the nation's payments on its net foreign debt barely budged. So now the easy money is coming to an end.

During all its history since the origination the United States has had a public debt. The gross national debt compared to GDP reached its lowest level since 1931 as Reagan took office in 1981. It skyrocketed for 12 years through Bush senior. Clinton reversed it at a peak of 67%. Bush junior crossed that line on September 22 and hit 69% on Sept 30. That's the highest it's been since 1955. Let’s turn to some figures concerning every decade of the previous century till nowadays to draw up a picture of the situation with the debt. In 1910 debt was $2.6 billions, 1920 – 25.9, in 1940 – 43.0, in 1950 it jumped up to the amount of 257.4 (that was an enormous amount presented 94.1% of GDP), 1960 - 290.2 (56.1 % ), 1970 - 389.2(37.6%), 1980 – just 33.3% of GDP 930.2, in 1990 it was 3,233 or 55.9% of GDP. And compared with 2000’s $5,674 billions (58% of GDP) 2008’s debt amount presents $ 10,642.8 billions or 72.5% of GDP. Below you can see the graph performing changes in behavior of US National Debt by the periods of the president in power presented by zfacts.com. 

 


Concerning the external debt that is the debt of all sectors of the economy owed to foreigners. Today in the U.S. foreign ownership of the public debt takes a significant part of the nation’s debt. 

In 2007 the US debt in the hold by foreign governments was 25% of the total, virtually double the 1988 figure of 13%. Despite the declining willingness of foreign investors to continue investing in US-dollar–denominated instruments as the US Dollar has fallen in 2007, the U.S. Treasury statistics indicate that, at the end of 2006, foreigners held 44% of federal debt held by the public. About 66% of that 44% was held by the central banks of other countries, in particular the central banks of Japan and China. In total, lenders from Japan and China held 47% of the foreign-owned debt. 

In 2006, the central banks of Italy, Russia, Sweden, and the United Arab Emirates announced they would reduce their dollar holdings slightly, with Sweden moving from a 90% dollar-based foreign reserve to 85%. In May 2007, Kuwait discontinued pegging its currency exclusively to the dollar, preferring to use the dollar in a basket of currencies. Syria made a similar announcement in June 2007. 
Foreign investors in U.S. dollar assets have seen big losses measured in dollars, and still bigger ones measured in their own currency. So in the situation of potential financial and political risks that is a big question today if foreign banks should stop buying Treasury securities or start selling them heavily: what is a better way to avoid great losses? 

In several cities around the United States, there are national debt clocks—electronic billboards which supposedly show the amount of money owed by the government. The most famous debt clock, the National Debt Clock located in Times Square in New York City. Since 30 September 2008, when the debt surpassed $10 trillion and exceed the limit of 12 digits. A new clock, enabling the recording of a quadrillion dollars of debt, is expected in 2009. 

As estimated population of the United States is 305,493,643 so each citizen's share of this debt is $34,837.93. And the most important thing that the National Debt has been still increasing since September 28, 2007 in average of
$3.41 billion per day.

It’s obvious that US stability and wellbeing has been shaken. The figures of debt are thrilling, convincing depth and gravity of the US position that seems to be one of the worst in the situation of world crisis. Economists from all over the world can not say something definite concerning the situation of the US external debt. What is the best solution? How to come out of such a deep crisis? The only person who doesn’t lose heart is a new president of the USA Barack Obama with his spirit mood. He doesn’t even doubt that Americans will manage to come out of the global crisis with the minimum losses. We’ll see…