We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Who Has Money To Lend

Here's one that has been puzzling me of late.

Do a Google for balance of payments and you'll quickly discover that all countries in the world seem to be running a balance of payments deficit. In other words they are borrowing money to buy goods and services. Right?

The question is if almost all major developed countries and all underdeveloped countries are constantly borrowing - who are they borrowing from? What has the cash - China, the oil states? Who?

Comments

  • PsiDOC
    PsiDOC Posts: 354 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    You answered the question in your statement.

    Every country is in deficit.
    So no one has the money. Never has. It's all simply a game of numbers on paper.

    Psi
    Near a tree by a river, there's a hole in the ground.
    Where an old man of Aran goes around and around....

This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.3K Banking & Borrowing
  • 253.7K Reduce Debt & Boost Income
  • 454.4K Spending & Discounts
  • 245.4K Work, Benefits & Business
  • 601.2K Mortgages, Homes & Bills
  • 177.6K Life & Family
  • 259.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.