United States As a Debtor Country Author:C. Fred Bergsten From 1983 to 1986, the United States was transformed from the world's largest creditor country to the world's largest debtor. It enters the 1990s with a net foreign debt of $700 billion which will rise to at least $1 trillion. This study analyzes the impact on the United States and the world economy, in terms of both economics and national secur... more »ity. It emphasizes the costs to the United States of servicing the debt, the country's increased vulnerability to external events, and systemic effects including the role of the dollar and American economic leadership.« less