Charles Brown wrote:
Is this the one that China and Japan hold so much of, but can't hope
to get paid ? <
me:
the US is still pretty powerful in the world; it's no Argentina. China
& Japan may have to worry about getting paid at lower rates (after
adjusting for exchange-rate changes) but they don't have to worry
about not getting paid.
Charles Brown wrote:
CB: So they have to worry about getting cheated ? Are they being paid right
now ?
yes, they are earning interest and principle. do they have to worry
about literal cheating? the US wouldn't do that, because then everyone
would do it.
Charles Brown wrote:
Are the trade deficits a cause of the "national debt" ?
it depends on what you mean by the "national" debt. If you're
referring to the debt of the US nation as a whole, yes. (except for
one quibble: it's the current account deficit that causes the debt of
the entire nation.)
but if by "national debt" you mean the _government's_ debt, no. That
arises from the government's deficit.
--
Jim Devine / "The tooth fairy teaches children that they can sell
body parts for money." -- David Richerby
