The biggest form of debt America has created is by printing the greenback (Dollar Note) at approx US $2.34 ( cost fig quoted some time back) and selling it into the world mkt at full price of US 100 $ note - thereby taking a debt in the form of goods purchased for its consumption. This was possible because the Greenback is the currency in many countries including USA. In addition the world traded its commerce in US Currency and this led to more printing of notes as countries built their reserves in this supposedly strong denomination.
Lo and behold. The greenback is loosing its sheen and the economies have started shunning it on the sly. There is no open admittance of this trend but the rising Euro and Pound Sterling as well as others is just a pointer in the direction the Greenback is now dwindling towards. And the slide is slowly but surely declining a bit too fast of late for US liking. Any watcher of the USD:EUR rate would vouch for the same.Euro was below one US Dollar in 2003 end and now see where it is placed (read US Dollar). US Dollar has lost 50% of its sheen in just a three years.
The sub prime mortgage crisis is a phenomenon when the general public was roped into sharing of the Loot of the "borrowed surplus" with a gung ho attitude of the drivers in D.C. They started believeing in their own paper castles.
America has done well on foreign lands but its score in house has always been in complete disorder whenever chips are down.
