Can anyone find the composition of U.S. federal debt? How much of our total debt is owed to foreign interests and what countries are the primary lenders?© BrainMass Inc. brainmass.com October 24, 2018, 11:40 pm ad1c9bdddf
The solution explains the composition of U.S. Federal Debt. The solution goes into some explanation of how much of our total debt is owed to foreign interest and what countries are the primary lenders.
The media and others suggest that the current account deficit run by the U.S. is a problem for the economy. What do you think? What action(s) would you advise federal government officials to take on this issue?
Additional Comments: The current account is equal to the difference between the value of exports and the value of imports (called net exports), plus net factor income (wages, salaries), plus net unilateral transfers(people or companies sending home money).
The component that we are concerned with is Net Exports
When there is a deficit, then more is going out than is coming in. However, as we saw in the textbook and chat, the US has historically attracted financial capital into the US.
What happens when those $ from foreigners are invested here? What happens if they are spent on consumption?
Note: The Current Account Deficit is not the same thing as the US Federal Government's Budget Deficit.View Full Posting Details