Thread :

This is a crazy world of Economics.
Read to know " Why".

Japanese save a lot. They don't spend much. Also, Japan exports far more than it imports. It has an annual trade surplus of over USD 100 billion. Yet Japanese economy is considered weak compared to US.

(1/12)

Americans spend a lot and save very little. Also United States of America (USA) imports more than it exports. USA has an annual trade deficit of over $400 billion.

Yet....the USA economy is considered strong and expected to get stronger & stronger.

(2/12)

But which money Americans spend? They borrow from other countries like Japan, China & even Bharat. Virtually, World saves for Americans to spend.... especially in USD.

Bharat keeps Forex assets of > $50 billion in US securities,China >$1.1 trillion & Japan in trillions.

(3/12)

Result:

US has borrowed over $5 trillion from World. So, as World saves for US - It is the Americans who are spending freely. Today, to keep the US consumption going, that is for the US economy to work, other countries have to remit $180 billion every quarter to US.

(4/12)

Just ask yourself 1 question..

Who has invested more?US in China or China in US?

US has invested in China less than 50% of what China's investments in US.

Same is case with Bharat. Bharat has invested > $50 billion in US. But US has invested < $20 billion in Bharat.

(5/12)