4 ms·
Some very naive questions here from a layperson not skilled in macroeconomics: what's going on here? What's driving this and why is this a problem? What do you
by dweekly 7y ago
Some very naive questions here from a layperson not skilled in macroeconomics: what's going on here? What's driving this and why is this a problem? What do you view as likely to happen?
- H8crilA 7y agoThis is "US holding foreign assets" - "foreigners holding US assets". It's the other side of the trade deficit (because if you're consuming more than you're producing then inevitably there must be some imbalance created somewhere). Also being in the red here is often referred to as being a "debtor country". US by far the greatest debtor country in the world at -$10T, next in line is Spain with -$1T, so an order of magnitude less. Main creditor countries are Japan, China, Germany. As to what it means you can read Warren Buffet's article from 2003, it's still relevant today (and the situation is far more advanced): https://fortune.com/2016/04/29/warren-buffett-foreign-trade/ https://fortune.com/2016/04/29/warren-buffett-foreign-trade/ Or Bob Prince from Bridgewater: https://youtu.be/DuTm1WA09uk?t=52 https://youtu.be/DuTm1WA09uk?t=52
- toxik 7y agoCan you please not post amp infected links?