When the domestic residents of US holds more foreign assets and this value is less than the domestic assets in the hands of the foreigners, US will have a large external debt. As more and more foreigners by properties in the United States, the external debt of the nation increases. When this condition exceeds the case of Americans buying properties outside the country, US will be considered to be a debtor nation. These foreigners are also interested in buying the debt instruments of the US government.
The US economic profile has greater dependencies in the conditions existing in other countries. When the size of US and its role in the global economy is considered situations remain uncertain in US about external debt.
