I'm not asking you about your world view. That's already established. You're a protectionist who thinks we can't compete. All I'm asking you to do is to explain how the story below creates any debt for anyone involved.
My young son, for example, received for Christmas several Chinese-made toys. These were bought with cash. If the Chinese toymakers invest their newly earned dollars in, say, that factory in Utah, the U.S. trade deficit rises but no debt is created. Neither I nor any other American owes any foreigner anything as a result of my purchase of toys from China and the corresponding Chinese purchase of equity in a company located in America.
I don't see any debt but since you do, please explain to us where the author misses it.
We aren't competing very well when we run up an annual trade defitit of 850 billion. In the past we did copmete very well and were a crediotr nation. This changed.
As of 1997, the United States (US)is a net debtor nation, running a current account deficit. The US has been running current account deficit since 1982, and been net debtor since 1988. In 1980 and 1981, the US was a net international creditor with current account surplus, then became a net creditor with deficit in 1982 through 1987, and since 1988 for ten years, it has been a net debtor with current account deficit.
All I'm asking you to do is to explain how the story below creates any debt for anyone involved.
If no debt is created what do you call "external debt" which you have cited a few times
He's full of shit and I gotta go. Later