What is the growing trade deficit and the national debt?
Monday, April 5th, 2010minoah 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.
