External Debt is the money owed by both public and private investors to foreign creditors. Many nations like Greece and the United States are facing a trillion/billion dollar crisis. Bailout plans have been issued by the President of the United States to his country and the European Union and IMF respectively to Greece. Let’s take a look at what the following top 10 Developed Countries racked up in external debt in 2010.
1. United States:
External Debt: 13,980,000,000,000 USD
Source: World Factbook
Date: June 30, 2010
Description: The United States has hit a deficit in its spending. On August 2nd, 2011, the United States was at a debt default and would have hit the debt ceiling of $14.3 trillion USD. Obama kept promise and hit a debt deal by August 2nd, 2011 by decreasing spending and by increasing some taxes.
2. European Union:
External Debt: 13,720,000,000,000 USD
Source: World Factbook
Date: June 30, 2010
Description: Under the stability and growth pact, European Union serves to make sure that the debt does not hit 60% of GDP. This means that the debt will not equal to 60% of the total income made by the populace both nationally and internationally.
3. United Kingdom
External Debt: 8,981,000,000,000 USD
Source: World Factbook
Date: June 30, 2010
Description: Just the government debt was between 37-43% of GDP in 2008. The external debt was 400% of GDP the same year. It has the second biggest external debt of all the countries in the G8. According to International Business Times the external debt in 2010 is 3 times the debt of the average American.
4. Germany
External Debt: 4,713,000,000,000 USD
Source: World Factbook
Date: June 30, 2010
Description: A country torn by war and stagnation has had resurgence in the post-cold war era. It rapidly emerged in the world market as a leader in exports. After an unexpected contraction in 2009, Germany is now growing and beginning to eliminate its debt with a 3.9% growth.
5. France:
External Debt: 4,698,000,000,000 USD
Source: World Factbook
Date: June 30, 2010
Description: Having the 5th largest debt, France decided to team up with Portugal in July of 2011. Since hitting a high in 2010, the external debt has gone down 6.43% in 2011. France is working hard to pay off its defaults.
