Deficits vs. Debt; what you need to know
Updated: Aug 1, 2022
Deficits and debt talk are dominating our news stations. Why do deficits and debt matter? What are they? How do they relate? This video will be a crash course on this matter and answer all of these questions and more.
There are 2 types of deficits in the news media today. The first is the federal spending deficit, spending more that we take in as revenue. The second is our trade deficits, an imbalance in trade where another country sells us more than we sell them. Debt is the cumulative effect of all the deficits plus the interest rate.
So, now that we are on the same page about our deficits, are they bad? How do they relate to our debt and how does it affect our relationships with other countries? Check out the video for the rest of the talk! The following images and links will be referenced in the video.
The Zero Hedge Article
The U.S. up 20%
China down 20%
Turkish Lira crash on US Tariffs
Another article for reference:
Who Owns the U.S. National Debt?