How are countries with constant or growing deficits not bankrupt?

Question

For example, the US and Canada have yearly deficits in the billions. Technically, doesn’t this mean the country is isolvent?

How often are countries in the surplus? What would they do with the extra funds/savings?

In: Economics

Answer 1

Because the US and Canada are the issuers of their own currency. They just change the numbers around to whatever accounts they want. That’s literally how the Fed works in the US, as told by the Fed chairs themselves.