SAVING IS SIN......, SPENDING IS VIRTUE
By Prabsac
@Prabsac (75)
India
December 5, 2006 11:19am CST
Japanese saves a lot. They do not spend much.
Also Japan exports far more than it imports.
Has an annual trade surplus of over $100 billions, Yet Japanese economy is considered weak, even collapsing.
Americans spend, save little.
Also US import 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?
1 person likes this
2 responses
@divir_vij (1591)
• India
6 Dec 06
Save more get rich.. Wonderful thing... :D
And ya nice research...
@baronarthur (4187)
• Indonesia
6 Dec 06
Is it a fact? But, you forget the background...
Japan and America have been the rich countries because they've saved:)
@Prabsac (75)
• India
7 Dec 06
Saving part comes after you earn it...that what exactly we have to look out from where does America gets the money...
Thats also very interesting..
America 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 billions 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 the US, Americans spend freely.
