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 they keep paying off old debt and issuing new debt. and new investors line up to buy the new debt. As long as they can manage the interest on the debt and the other operating expenses, or have ways to increase revenue (eg. Raise taxes) the government can manage.