To: RunningJoke
Crazy as it might seem, the foreigners are buying American Equities with this surplus.No, they purchase debt issued by the Treasury to finance the Budget Deficit.
Last I checked, approximately 18% of federal tax revenue is required simply to pay the interest on that debt.
11 posted on
11/12/2003 11:11:21 AM PST by
Willie Green
(Go Pat Go!!!)
To: Willie Green
the foreigners are buying American EquitiesRunningJoke is right on this one, in fact most of the US current account deficit is from foreigners buying our stocks. (Economist (Aug. 16 page 10).
To: Willie Green
Actually they are heavily invested in the stock market and yes they are buying Treasurys as well. Either way, it is not a good thing.
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