[Toddsterpatriot]

How do you account for Japan's 1.6 trillion external debt??

The Japanese government borrowed and spent more money than they took in. They did this even though private Japanese companies and citizens sold more goods to the rest of the world than they bought from the rest of the world.

Got it?

[Mase]

private Japanese companies and citizens sold more goods to the rest of the world than they bought from the rest of the world.

Maybe dennisw will also prove to us, finally, how a trade deficit causes debt by refuting what Don Boudreaux wrote in post #47.

Perhaps he can do it without linking us to groups like Center for American progress. Too funny!

[dennisw]

Clown. You are bringing up the rear. I mentioned in post #58 that Japan's external debt was something I did not expect but could be chalked up to Japan's government debt being bought by foreigners.