A trade deficit is only possible, if our check bounced, or their ship turned out to be empty, after we paid them. When a trade is consumated, at that time, it is exactly fair. Each party has agreed to the exchange. Unless of course fraud was involved.
The reception of cash, leads to something being done with the cash. In this case, the Chinese bought piles of our subprime loans. Mortgage pools are not counted as trade, but boy would I be pissed if I had a pile of those right now!
The Japanese, if what you say is true, should have turned out very well after the late 80’s. My silly explanation above, is why they lost, and we won. The decision of what to do with the cash, is the remaining part of the trade. Seems that these mass exporters never really understand how to handle the money...
Dream on. Real countries have strong currencies.
My Brother!!!!! Damn Man! it’s been along time my friend,How are you?
You mean they've been Commies too long?
yitbos
actually, it *did* turn out "very well" for some of the Japanese after the late 80's - the economic overlords in Japan were able to create a form of economic/consumer slavery which has keep wages there completely stable - the apparent continuous recession they have been in since the 1980's is just the way the Japanese financial/industrial masters want it - Japanese companies are *very* profitable. while there is a nearly 0% interest rate in Japan (!) just try to get a loan in Japan if you are a regular Japanese consumer/citizen... its very difficult.
Japan has morphed into a modern consumer slave state, and the US is headed in that direction and already has picked up some of the same characteristics - check US wage growth over the last 20 years for example...