U.S. a Debtor Nation
World Debt Crisis Comes to America
A Scant Two Years have passed since economists warned of an impending world crisis brought on by the inability of several Third World nations to repay their debts. Because much of that outstanding debt was owed to American banks, massive default by Mexico, Brazil and other developing nations would have undermined the banking system of their biggest creditor, the United States. The Third World debt crisis still threatens, despite the recovery of recent years.1 But many economists believe an even more immediate debt crisis has developed in the United States, which for the first time since 1914 has joined the ranks of debtor nations.
It came as no surprise when the Commerce Department announced earlier this year ...