What is the growing trade deficit and the national debt?
minoah asked:
When someone buys a toyota for example ,how does that put us in a position to have debt to japan.Is it because of countries who lent the US money by buying government bonds?Please clarify.
I know it is when we buy more imports than exports in value. But that is still unclear.Specifically,why does it matter if we buy much more than we sell? I realize the national debt has to do with trade but it also relates to how much this country borrows money to finance our own budget.
When someone buys a toyota for example ,how does that put us in a position to have debt to japan.Is it because of countries who lent the US money by buying government bonds?Please clarify.
I know it is when we buy more imports than exports in value. But that is still unclear.Specifically,why does it matter if we buy much more than we sell? I realize the national debt has to do with trade but it also relates to how much this country borrows money to finance our own budget.
Tags: Lent, National Debt, Trade Deficit
April 7th, 2010 at 9:49 am
Most of your Toyota is made in Japan and there is quite a price to pay for transport. It matters that we buy more than we sell because our currency will become weaker thus taking more money to buy things and its money we don’t have.