Norman
Diamond Member
- Sep 24, 2010
- 31,254
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So I have been pondering this question a bit, and I mean the answer is probably very simple, but I just want clarification on this before I go sputing out nonsense, like you see everyday in mainstream media
The question is: If government is heavily in debt, but has never had trade deficits, does that mean the citizens of the country own all the debt?
It's really simple but DAMN, I can't think this through.
And also if someone could tell me a bit about the currency exchange. So if a foreign investor invests to your country (they can use different or same money really), does that mean they actually give the money to some OTHER investor in the other country which then invests to the government bonds and so on. Again this is really simple but just can't get my head around.
Yeah I need to read a bit more, but maybe this resulting conversion will help me. Either way thanks a lot to the guy with the answer =).
The question is: If government is heavily in debt, but has never had trade deficits, does that mean the citizens of the country own all the debt?
It's really simple but DAMN, I can't think this through.
And also if someone could tell me a bit about the currency exchange. So if a foreign investor invests to your country (they can use different or same money really), does that mean they actually give the money to some OTHER investor in the other country which then invests to the government bonds and so on. Again this is really simple but just can't get my head around.
Yeah I need to read a bit more, but maybe this resulting conversion will help me. Either way thanks a lot to the guy with the answer =).