truthiness on 14 January 2008
| DarkNight_DS said: Theoretically the country with the best balance should have the highest profit margin... and those in a deficit should be broke off their rocker. So why is it that the states keeps spending? |
China likes US buying Chinese goods --> re-invests into US economy (T-bills, property, goods) ---> US buys more.
Also, countries that try to sustain long term positive balances have also caused problems for themselves. See a lot of the Asian Tiger countries in the late 80s - today.
A good thing to keep in mind is that for every country positive another country has to eat that as debt. The US eats a lot of that debt, and at the same time supports a good deal of the world economy.
