List of countries by external debt

originally posted by: ScepticScot

originally posted by: bullcat

originally posted by: Hoosierdaddy71
Those countries with 1000% debt to gdp will never pay it back.

According to the rule of percentages, I don't think anybody with over 100% debt to GDP can pay it back.

Interesting to see Luxembourg is the worst off in that list (after India) but I am focusing on US/Europe/Russia.

Russia is doing very very well compared to UK, Germany, France, then the US.

GDP is an annual figure, debt a fixed one. Country's can owe and pay back well over their GDP

Yeah I hear GDP is just booming right now.

originally posted by: ScepticScot
a reply to: greencmp The figures in the OP are for external debt so not anything to do with social security. The US figure is its gross debt to the rest of the world. The fact that it is gross is important as does not take into account how much is owed back in return.

Ah, good point, I am always just jumping past the paltry $18T and pointing out the $200T.

It is actually pretty small if it includes private debt.

originally posted by: ufoorbhunter
But we owe £160,000 per person if I understand it correctly? It sounds a lot of money?

a reply to: greencmp

Yes, the UK is in even worse shape though, as SkepticScot pointed out, this includes private debt which explains why the Russian figure is so low by comparison.

The amount of debt owed overseas (net or gross) is largely irrelevant by itself. Debt is only a problem when you cant pay it back, or more accurately cant make the payments.
For public debt their is effectively unlimited capacity to pay back/refund the debt.
For private external debt as long as the economy continues to function and grow it is not an issue. You can even take the level of debt as a indicator of strength in the economy (people don't lend to a failing business).
That isn't to say that the level of debt isn't ever going to be a problem. Just that something else has to happen first to make it a problem.

originally posted by: Dark Ghost
I was browsing Wikipedia and came across a page that lists estimates of global foreign/external debt in order of highest country to the lowest. The figures are rather staggering to say the least.

List of countries by external debt

I must admit that my knowledge is lacking when it comes to this topic. I have tried some research, but haven't had much luck yet. Perhaps I am looking in the wrong areas?

Can somebody who is knowledgeable in economics (or somebody with the relevant knowledge) please explain the following:
a. How is external debt defined in layman's terms?
b. How is external debt calculated?
c. To whom is the debt owed?

Edit: For example, the list states the United States is approximately $17,997,889,181,468.20 in external debt. To whom exactly is this debt owed?

Me

Every year that inflation exceeds interest on the debt, the borrowed money is not only free, the borrowing nation actually comes out ahead.

I see a lot of similarities between countries selling bonds and companies selling stocks.

Thank you to everyone that contributed to this thread. While there is still room for more knowledge, I feel I have a greater understanding on the nature of external debt.