Tuesday, September 14, 2004

THE BENEVOLENCE OF CHINA AND JAPAN, PART II


Here is the corollary picture to this earlier post on Treasury's inability to sell bonds to the private market.



Rob Scott of EPI explains how foreign governments are now financing a whopping 2/3 of the US trade deficit. Why might foreign governments in Japan and China loan us this much money? Hell, they have to do something with the dollars they are earning by flooding the US market with their exports. So why not loan it back to us so we can buy more of their stuff?...and the circle of life continues.

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