Japan has a trade surplus and some of their debt is still owned by foreigners? I thought that was impossible?
I am glad that you finally admitted you were wrong.
I was wrong about Japan. They still run a trade surplus the way a serious industrialized nation does. The way we used to. Now we whip out the charge card to buy hundreds of billions of dollars worth of foreign goods and that won't last forever
Yes. And despite the seriousness of their industrialization, our economy has kicked their economy's ass for the last 15 years. How do you explain this disconnect?
Now we whip out the charge card to buy hundreds of billions of dollars worth of foreign goods
You're putting the cart before the horse, again.
Americans buy foreign goods. Foreigners take the cash they receive and either buy American goods, buy American assets (stocks, real estate etc.) or buy American debt. Usually the debt they buy is government debt. Debt issued because the government spent more than it took in.
I almost forgot, they could also take those dollars and put them under their pillows. They could even eat those dollars. Now, if you can, please explain if any, or all, of these options is bad for America and why? Thanks.
and that won't last forever
Never said that it would. What will happen when it ends?