Monday, September 25, 2006

$35,000 per household

That's your share of our net foreign debt. Net foreign debt is the difference between the interest we pay our foreign creditors and the money we make from our foreign investments. For the first time in ninety years, we have a significant net foreign debt; it was $2 1/2 billion as of June.

Right now that 2 1/2 billion is small potatoes in our $13 trillion economy. But, if the trend continues, it will have significant deleterious effects on our economy. More of our money will go abroad, less will stay here.

We need to start now to either reduce our consumption or lower our debt.

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