Pay what back? If I buy a DVD player made in Japan at Best Buy, and pay with cash, how is any debt created? The Japanese can use those dollars to buy goods or services from us or invest in our economy. How does either create debt?
Right now America is a debtor nation.
According to a study by Ricardo Hausmann and Federico Sturzenegger, of Harvard's Kennedy School, the current-account deficit is a statistical illusion. They found that the net return on the U.S. financial position in 2004 was a positive $30 billion and not much different than it had been in 1982, despite 22 years of current-account deficits. When factors such as insurance, know-how, and the value of universally recognized brand names like McDonald's, Disney and Coca Cola are counted, the U.S. becomes a net creditor, not a net debtor, nation.
The rate of return on our liabilities is much smaller than the return on our assets. Foreigners willingly accept a lower rate of return by buying our Treasury bills because they desire currency stability, liquidity, and a safe haven against political and economic risk.
On the other side, our investments overseas earn a much higher rate of return. When these higher rates of return are included in the calculation, as shown by the chart above, it becomes clear that the U.S. is a net creditor nation