|
Heart of Ohio | This thread was a real eye opener for me ! Thanks for the articles Zen and Dave !!
Many years ago, I heard an economic presentation and the only thing I remember from it was " The US currently has only one big financial advantage over China, and I can't believe they let US get away with it....... ALL the debt we have accumulated with them is in dollars ! If the s#@* hits the fan with them....... we only need to fire up the presses." I doubt it would be that simple.
Bottom line seems to me, one needs to make (manufacture, produce, drill, mine, etc) something tangible and sell it for profit for true financial stability and health between all financial classes. Wasn't Wall Mart recently crowned the largest most profitable company in the US awhile back? What ever it was, it struck me " They don't even make anything......just buy and resell" Wall Street firms have made BILLIONS shuffling paper with scheme and device (Junk Bonds, credit swaps, hostile takeovers, etc. etc.) and how did that turn out. It seems like trade deficits are similar, may be OK for now but .... a day of reckoning is around the corner.
If those dollars that leave our country as trade deficits return as investments, then aren't US citizens and companies, losing, "giving away" major US tangibles (land, homes, businesses, etc.) in addition to JOBS ??
Probably wrong but...... It seems to me ALL of it (trade deficits included.), lends itself to a shrinking middle class and I can't think of a scenario where that's a good thing for anybody, but the richest of the rich and a power hungry government.
Alberta, I know nothing about economics, politics or world trade.....and I'm NOT pretending LOL. I do know what my "gut" tells me tho, and a deficit in anything is rarely good.
Edited by Frisky3208 1/31/2017 05:00
| |
|
Why is a trade deficit a bad thing?
