[galaxyLogic]

From the link it seems that all major economic powers have a large "external debt". Then who are the creditors? If every country paid their debt, where would the money end up?

And I see from the article that "... while a country may have a relatively large external debt (either in absolute or per capita terms) it could actually be a "net international creditor" .

Wouldn't it be better to focus on this "balance of debts vs. assets?"

[konspence]

>Then who are the creditors? If every country paid their debt, where would the money end up?

At least in the US, most of the funds would end up in private citizens or corporations in the form of treasury bond repayments.

[kortilla]

>Then who are the creditors? If every country paid their debt, where would the money end up?

Bond holders. The us treasury holds bond auctions all of the time to raise money.

[gaius]

Then who are the creditors?

The best analogy I think is that we borrow the money from our future selves. If we invest it well then our future selves will enjoy the wealth in retirement. If we fritter it, we will be destitute in our old age.

[jchanimal]

Accountants and economists will think in terms like cash flow, net present value, opportunity cost, etc. In that way of thinking rationally you want as much debt as you can carry. State actors with control of money supply are even less worried about solvency.

[OscarCunningham]

The governments owe money to the public.