LIKE many others I’m continually trying to work out what is driving Donald Trump in order to make some sense of his actions.
His history as a real estate developer makes it usual for him to be a big borrower of capital.
People in this situation often overextend their financial capability which can lead “their companies” (but not themselves) into bankruptcy.
His past form displays that tendency.
In past articles I have looked at the debt of the USA as a percentage of GDP, in order to show how indebted the US government is in relation to many other countries in the world.
It isn’t a pretty picture.
Recent research has now quantified a US dollar amount the USA owes to many other countries.
There appears to be little or no intention of ever reducing the eye watering amounts, let alone ever repaying those liabilities.
The list is an extensive one of over 20 countries plus a group debt to many smaller nations which I find to be alarmingly concerning.
I am left wondering if the totality of debt might be the reason why Venezuela and its huge oil reserves have come to Trump’s attention as possible revenue raisers as a method of reducing or replacing debt.
Maybe the lack of action by not helping Ukraine is another money saving exercise.
Also, the fact that the USA has withdrawn from over 60 worldwide organizations which they previously funded, might be more of the same.
Whilst reducing debt or even eliminating it should be a number one priority for every mature and developed society, maybe Trump’s actions might be styled in that direction without the need for him to admit to this position.
Here are some of the many countries to which the USA is in debt to. Germany US$97 billion, Mexico US$103 billion, South Korea US$125 billion, Saudi Arabia US$138 billion, Norway $158 billion, Brazil $202 billion, India $219 billion, Singapore $249 billion, Hong Kong $255 billion, Taiwan $282 billion, Switzerland $289 billion, France $332 billion, Ireland $336 billion, Belgium $375 billion, Canada $379 billion, Cayman Islands $419 billion, Luxembourg $424 billion, UK $723 billion, China $759 billion, Japan $1 trillion.
Rest of world: estimated at US$1.6 trillion.
Group of small nations: US$8.5 trillion.
These numbers should create fear for investors.
By John BLACKBOURN
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