KJ

An interesting story about world economy. How valid is it? I leave it to you. Amazing logic  indeed. This is a crazy world! Japanese save a lot. They do not spend much. Also, Japan exports far more than it imports. Has an annual trade surplus of over 100 billion. Yet Japanese economy is considered weak, even collapsing. Americans spend, save little. Also US imports more than it exports. Has an annual trade deficit of over $400 billion. Yet, the American economy is considered strong and trusted to get stronger. But where from do Americans get money to spend? They borrow from Japan, China and even India. Virtually others save for the US to spend. Global savings are mostly invested in US, in dollars. India itself keeps its foreign currency assets of over $50 billion in US securities. China has sunk over $160 billion in US securities. Japan's stakes in US securities is in trillions. Result: The US has taken over $5 trillion from the world. So, as the world saves for