Quote:
I am not an economist, but isn't that FOREIGN debt??? (As opposed to consumer and/or domestic)
|
I am not an economist either, but when the US government spends more money than it has (which is the case now) and when the income of taxation cannot cover those expenses (especially when you decrease taxes while increasing spending !), it creates domestic debt. To cover this debt, the government prints US bonds that are purchased by foreign banks (Japanese, for instance). This is how domestic debt becomes foreign debt.
(From what I have understood
)
Aurel