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To: TChris
 

Do you know the difference between a budget deficit and a trade deficit?

Are you for real?

You do understand that a trade deficit has nothing at all to do with debt, right?

Then how come we are in hock to the Chinese?

135 posted on 10/08/2009 2:43:18 PM PDT by dennisw (It's not called the Wheel. It's called the Carousel.)
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To: dennisw
Then how come we are in hock to the Chinese?

Perhaps because of the US Treasuries they have bought?

Look, obstinance and anger neither equal nor overcome facts.

The term "trade deficit" is a quick and dirty way of saying "imports exceed exports". For example, Hawaii has a massive trade deficit, because it must import nearly everything. That does NOT mean that Hawaii is deeply in debt.

Hawaii could go on a "Hawaii first!" campaign and require all its citizens to "buy Hawaiian" and reject any imports. This would result in either 1) severe shortages, or 2) severe price increases, or probably BOTH. Forcing the state to avoid "trade deficits" would be nearly crippling.

Hawaiians could scream and moan about how its petroleum production has been outsourced to Texas and Alaska, just to satisfy greedy oil companies. Or they could stage protests over how the Hawaiian sandstone market is being brutally undercut by cheap imports from New Mexico.

OK, I'm digressing in a big way here. But these topics are all interrelated.

137 posted on 10/08/2009 2:56:22 PM PDT by TChris (There is no freedom without the possibility of failure.)
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