Which country borrows the most money from the rest of the world?

Answer 1

Countries get into debt because they don't have a system to go by or their system doesn't work. They could also go into debt by not selling enough goods that they bring in. The economy could fall by people using credit cards and not paying the money back.when there is depression in the country and government wants to overcome it by entering into recovery stage of business cycle then for this purpose it will need finance so it will accept foreign grants and aids from IMF, WORLD BANK etc.

Answer 2

You are viewing each country as one single entity, and that is wrong. What you are missing is that countries are primarily in debt TO THEMSELVES. For example, 70% of the U.S. national debt is held by Americans. Because "national debt" refers to the debt of the U.S. government, and the government borrows money by selling bonds to the public -- primarily American investors, corporations, and banks.

Japan has an enormous national debt, but even much more so than with the U.S., it is held domestically. Japan's government owes that debt to Japanese investors and savers.

So realize that the lenders are individual and corporate investors who lend by buying government bonds. If you are a bond investor you could choose to buy some bonds from the U.S. AND from Japan AND from the UK, etc. Meanwhile there are UK investors buying US and Japanese bonds, and Japanese investors buying US and UK bonds. So it is really a big complex mix of investors (lenders) of all nationalities buying government debt of all nations.

If you view a nation as an aggregate of all its investors, then you could say pretty much all countries lend money to all other countries, and all countries borrow money from all other countries. NO country is debt free, and no country does not hold some debt of another.

Answer 3

The United States of America