Thursday, September 01, 2011

The looming collapse explained in 5 minutes

A better way to describe borrowing money from other countries is that we buy things from them with dollars, and then they turn around and use those dollars to buy our bonds. The net exchange is that other countries are making things for us in return for I.O.U.s.

1 comment:

Cathy said...

Well THAT was cheerful!
I feel soooooo much better ;)