The portion of the national debt owned by foreigners does constitute a burden to the U.S.

Question

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When foreign entities purchase U.S. Treasury bonds to finance the national debt, they become creditors of the U.S. government and expect to be paid back with interest. This interest payment represents a burden on the U.S. economy as it diverts resources away from domestic programs and investments. Additionally, if foreign investors lose confidence in the U.S. economy and start selling their Treasury holdings, it could lead to a depreciation of the dollar and higher borrowing costs for the government. Therefore, the portion of the national debt owned by foreigners does constitute a burden to the U.S.

The Portion of the National Debt Owned by Foreigners Does