Korean Job Discussion Forums

[Troll_Bait]

http://english.chosun.com/w21data/html/news/200808/200808290012.html

[endo]

So is this a good or bad thing?

I'm not really knowledgable about internatonal economics/

[Temporary]

Well, think about it.. Common sense. "Debitor" is debt a good thing or a bad thing.. There you go it answers your question..

Net Debitor is a bad thing.. Net Lender is where you want to be at.

[endo]

I mean specifics.


So does South Korea borrow a lot of foreign capital? Who do they borrow it from? And why do they need to borrow it in the first place?



I'm about to watch the documentary I.O.U.S.A. so perhaps I will get a better sense of things.

[Whistleblower]

What is "Debitor" exactly Temporary? Is it "Debitor Does Dallas" or something along those lines?

[mindmetoo]

You'll notice a lot of companies don't loan out their profits but reinvest them and borrow more. Do you loan out your money (becoming a net lender) or borrow money and buy a house and car? Would you rather your nation lend your tax dollars to Africa or reinvest them and borrow more money to build you things like roads, subways, and nuclear power plants?

Being a net lender says little. If you're lending money out instead of building infrastructure that's probably a very bad thing, especially if you're lending to nations who might not pay you back. If you're borrowing money to build new gas fields, power plants, roads, airports, subways, etc. that's probably a good thing (assuming the projects are well managed). If you're borrowing money to build massive palaces, give everyone tax cuts for finishing their basements, etc, that's probably a bad thing.

[tob55]

mindmetoo wrote:

[Cheonmunka]

[Bryan]

[skeeterses]

I do have hope that Korea will do a better job at managing its debt better than America.

However, after being there for over 3 years, I have a very strong feeling that a lot of the development going over there has been out of scale for a small country. For example, the roads. Korea imports 100% of its oil but is still continuing to build roads in an era of rising oil prices. And then there is the issue of overpopulation, and yes we do have to think about that. Korea has one of the highest population densities in the world. If there were a sudden disruption in trade causing food imports to stop, South Korea could face severe hunger just like its neighbor up north. There simply isn't enough arable land for Korea to feed all of its inhabitants.

Even with economic infrastructure being a much better investment than giving people credit cards, we all must recognize that there are limits to the planet's resources and that the economies should be within the limits of what the planet will support.

[Juregen]

[Juregen]

[mindmetoo]