The overall indebtedness is now about $4.4 trillion, nearly twice what it was in 2000 - an increasingly costly arrangement for Americans and a potentially risky one for the nation's foreign creditors.

Bizarrely, in some respects, these havens include the UK, even though its overall indebtedness is higher than much of the distressed eurozone periphery.

Further increases could prove painful to consumers, because American households have greatly increased their overall indebtedness in the last several years, and many monthly payments fluctuate with changes in interest rates.

In 1958, when the funds rate was last at 1 percent, the economy's overall indebtedness was about half of today's.

Higher trade deficits subtract from domestic economic growth, and they have also led to a staggering increase in the United States' overall indebtedness to the rest of the world, which is now ballooning by more than $600 billion a year.

Either method of accounting for the $50 billion seeks to evade the issue of raising new taxes to cover the spending, but both add to the Government's overall indebtedness.

Mr. Proestakes said the biggest change would probably be in sectors like heavy manufacturing, where adding current pension values to the balance sheet is likely to increase the company's overall indebtedness.

But a Midland spokesman in London said the swap would be good for all of the lenders because Peru's overall indebtedness would be reduced by $8.8 million, thus increasing the country's ability to make future payments.

But there is still considerable debate over the extent to which such techniques can have a significant impact on overall indebtedness.

We think it right that a state's overall indebtedness should be more closely monitored.