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Strategies & Market Trends : Asia Forum
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To: MikeM54321 who wrote (8511)4/21/1999 9:29:00 PM
From: TimbaBear  Read Replies (1) of 9980
 
The part of this trade deficit that I don't understand is this: If Americans are "spending" dollars on foreign goods.....how does that translate into other countries financing the American consumer??....Isn't the American consumer financing this debt through increased earnings, capital gains, home equity loans and other forms?.....Treasuries don't fund much of the "trade" imbalance, Treasuries fund US Gov't spending, not consumer spending
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