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How can a country be "rich" but be in such huge debt ?

I have never understood the world economy.

It was announced yesterday that the sign that displays the US national debt has run out of room and so they are going to add 2 more numbers on the end.

http://news.bbc.co.uk/1/hi/business/7660409.st m

So my question is:

The USA are considered a rich country, but have debts in the trillions (estimated 11 TRILLION dollars)

So how does that work?

How can they be a rich country but be in so much debt?

Who are they in debt to?

Is this the total personal debt of all the population in the USA, or the "country" debt (or are they the same thing)?

vehelpfulguy Thurs 09/10/08 10:20

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Gromit
Thurs 09/10/08
11:04

From wiki:
The United States total public debt, commonly called the national debt, or U.S. government debt, is the amount of money owed by the United States federal government to holders of U.S. debt instruments. Debt held by the public is all federal debt held by states, corporations, individuals, and foreign governments, but does not include intragovernmental debt obligations or debt held for Social Security. Types of securities held by the public include, but are not limited to, Treasury Bills, Notes, Bonds, TIPS, United States Savings Bonds, and State and Local Government Series securities.
On 30 September 2008, the total U.S. federal debt passed the $10 trillion mark, for the first time, with about $32,895 per capita (that is, per U.S. resident). Of this amount, debt held by the public was roughly $5.3 trillion. Adding unfunded Medicaid, Social Security, Medicare, and similar obligations, this figure rises to a total of $59.1 trillion, or $516,348 per household. In 2007, the public debt was 36.9 percent of GDP, with a total debt of 65.5 percent of GDP. The CIA ranked the total percentage as 26th in the world

http://en.wikipedia.org/wiki/Us_debt

During those reclkless Clinton years when hugh amounts of the US National Debt were paid back, the clock in Times Square was stopped because it going backwards confused people. But the election of George W, it was started again, and he has managed to add half a trillion dollars a year to the US National Debt.

http://edition.cnn.com/2000/US/09/07/debt.cloc k/

keyplus90
Thurs 09/10/08
11:57

It is same as you may get a Rolls Royce Bently and people would think you are rich.

Other side is that you owe money to HP company or loan to a bank.

rov1200
Thurs 09/10/08
21:27

We have just finished paying off debt to the USA for WWII. We could have paid it off years ago but decided to do it in instalments. I hate to think what the total interest payment was.

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