Foreign Debts 1989

When Reagan’s presidency terminated, the national deficit was tremendously high. The debt within the countries has always been an ongoing problem; however the Reagan Administration held high responsibility in creating the night debt ratio in United States history. Taxes were cut and defense spending swelled, but spending was not cut elsewhere. Prior to this in 1983, the United States obtained a surplus of 89 billion dollars with other countries. On July 3, 1990, the Commerce Department reported that the foreign debts had increased by 25 percent to 663.7 billion dollars. Many assets were borrowed and owned by 1989. The United States assets abroad held value of 1.266 trillion dollars and the foreign assets in the United States were 1.797 trillion dollars. Due to the rise in foreign investments, the Commerce Department states that the foreign investments in the United States escalated by 22 percent to 400.8 billion dollars in 1989. When Reagan began his presidency in 1981, the debt/GNP ratio was 33 percent. By 1989 when his years as President were over, the debt/GNP ratio was 53 percent. With his high percentage of debt, Ronald Reagan left the United States needing much skill and many years to secure the foreign debt.

"Foreign Debt of the U.S. Rises." 3 July 1990. 26 May 2009 .
"The Years of Billy Joel's 'We Didn't Start The Fire' - 1964-1989 (Part 3)." BBC Home. 26 May 2009 .