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Take your FICO and shove it! (lemmy.world)

submitted 7 months ago by [email protected] to c/[email protected]

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[–] [email protected] 7 points 7 months ago* (last edited 7 months ago) (1 children)

Except a nation with no debt and a negative trade balance has negative wealth.

You can't sneak negative trade balance into an argument about public debt.

A nation with no debt has the ability to take on more debt than if it already has debt.

" Zero national debt " means zero dollars left in circulation after taxation.

You can have debt for circulation while maintaining a net surplus in all accounts. For example Norway has a per capita debt of $42k USD while maintaining a surplus of $295k USD per capita.

It's similar to how a company like Apple holds debt of $108 B USD while maintaining a $162 B USD surplus.

[–] [email protected] 1 points 7 months ago

Which is why the trade balance is crucial when talking about financial assets. Because then all of these are financiall assets in foreign countries.