Yeah, but the crack whore free traders tell us if we don't keep it up the whole economy is going to crumble. Kind of like a drug dealer telling a client that if he kicks the habit he will feel bad.
Hey, its true. Withouht cheap goods produced by workers living their Third World lifestyles, we'd be screwed. Which is what makes us THE GREATEST COUNTRY ON EARTH!
Toyota to build Camrys at Subaru plant in Indiana
Kia picks Georgia for first U.S. plant
Nope, it's a sign of weakness. All this means is that foreigners have accumulated huge piles of USDollars from our humongous trade deficits, that they need to diversify and invest them. So they buy US assets (land and corporations) that will yield them a profit. Alternatively they invest this money in US securities and bonds. Some private, some governmental as in Treasury bills
To be sure, these capital inflows mean that the U.S. is also running a trade deficit of equal magnitude. But all of that has contributed to a rising standard of living.
This juiced up standard of living is achieved by going into deep debt. If you earn $40,000/year and charge $300,000 to your credit cards to spend on life's pleasures, your standard of living will also rise. But it's an unsustainable standard of living. You will eventually default on payments, go bankrupt, and your assets will be seized to pay creditors
You'll just have to forgive me if I tend to listen to actual Wall Street experts on this who have decades of history behind them to back up their analysis rather than you, who I don't know.
Don't believe those Wall Street clowns and Kudlows. It defies reason that you can build sound prosperity on a mountain of unpayable debt. Many have tried. None have succeeded. Your word for the day is - "unsustainable". Go look it up
| Squanderville versus Thriftville (Warren Buffet) ^ |
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| Posted by dennisw On News/Activism ^ 01/07/2004 11:35:03 PM EST with 15 comments fortune ^ | oct 2003 | Warren Buffet By Warren E. Buffett, FORTUNE I'm about to deliver a warning regarding the U.S. trade deficit and also suggest a remedy for the problem. But first I need to mention two reasons you might want to be skeptical about what I say. To begin, my forecasting record with respect to macroeconomics is far from inspiring. For example, over the past two decades I was excessively fearful of inflation. More to the point at hand, I started way back in 1987 to publicly worry about our mounting trade deficits -- and, as you know, we've not only survived but also thrived.... |
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