Somebody please explain to Paul that when everyone (both Americans and the Chinese) puts their money in US concerns, that this is what makes the trade deficit bigger. It's called the balance of payments. The Chinese have been buying stocks of US concerns with money that they got by selling stuff like oil below cost.
Maybe I'm not explaining these technical terms clearly enough. Is there anyone one else here that can tell Paul how the Capital and Current accounts operate?
"Experience has proven, however, that without any controls a sudden reversal of capital flows can not only destroy an economy, but can also result in increased poverty for a nation."
It wasn't until after I reread Paul's reply to me (in his post #531 in the linked to thread) did I realize why he posted it in the first place. I had worded my post kind of awkwardly - certainly to the point that the Rhodes Scholar misunderstood what I was writing and felt that he needed to provide a definition of what the meaning of the word "bond" is. After the he replied I was scratching my head thinking, "Yeah, what's this got to do with the price of tea in China?" But, no matter. It allowed the perfect opportunity for one of us to, once again, take him over the knee and spank his little fanny over his terrible ignorance/stubbornness on economics.