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† "The US as a Net Debtor: The Sustainability of the US External Imbalances".
America became a net debtor in 1989 and has remained one ever since.
At the global level, liabilities tend to exceed assets; the world as a whole is a net debtor.
Within 40 years, after two costly world wars and economic mismanagement, it became a net debtor and the dollar usurped sterling's role.
For a net debtor nation like America, lower rates raise national income by reducing the flow of payments to foreign bondholders.
"These lower-end figures indicated to us that in reality Africa is a net creditor to the world rather than a net debtor, as is often assumed".
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If he is right, the euro zone, officially a big net debtor, becomes a net creditor.Dodgy funds from poor countries, too, are attracted by the secrecy offered by some jurisdictions.
According to official measures, the United States is a big net debtor.
Although it is a large net debtor, it does not have to make net payments of interest and dividends to the rest of the world.
Right now, however, I just want to lay down a marker on an issue I really really do know something about: America as a net international debtor.
Never before has the guardian of the world's main reserve currency been its biggest net debtor.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com