Replies

"The first law of economics is that there is never enough to go around; wants are unlimited while the ability to satisfy those wants is limited at any point in time"

I couldn't finish reading the article once I got to this untrue statement in the sixth paragraph.

There is always enough to go around and the scarcity is alwasys allocated efficiently by the price mechanism.

That is what the "trade deficit" is: a price mechanism.

All of the countries that are getting dollars from their sales to the U.S. will now have increased their wealth.

Because of the large amount of dollars in foreign countries this will make US goods "cheap," and subsequently demand for US goods will rise.

That demand then will be satisfied by increasing production in the US. More jobs; greater wealth will result in the US.

So, just calm down. The inevitable laws of supply and demand will bring the trade deficit/surplus into equilibrium.

There is always enough to go around and the scarcity is...

And "scarcity" contradicts your premise that "there is always enough to go around."

But it was a nice try.

do you understand what the chinese currency peg means? as the dollar devalues, the market forces you speak off don't get a chance to occur - because chinese goods become cheaper in those same markets. the forces that might move the US trade deficit towards equilibrium don't work so long as china maintains the peg, the export gains we should be making, are in part taken by chinese products.