U.S. private and public debt to foreigners, including foreign governments, is enormous and still growing. The debt is damaging the U.S. economy and the country’s stature as a world leader. Reducing this debt will require public action to restrain the fiscal deficit and bolster private savings and trade. Ultimately, adopting a national growth and innovation strategy would highlight key economic sectors for balancing international flows of goods, services, and capital.

The Other Deficit— the International One— and How to Shrink It