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To: Cobra64

>> The entire trade issue will equalize over time <<

Well no, it won’t.

As long as the US dollar is the world reserve currency, and as long as the rate of return on investment in the USA is higher than the worldwide average rate of return, foreigners will want to invest more in the USA than we invest overseas. That is, we will have an INVESTMENT SURPLUS.

And because of the way double-entry bookkeeping works for dealing with GDP and other measures of national income, the investment surplus is simply the mirror image of the so-called trade deficit. Always, always, always.

In other words, there is no rational or realistic possibility that the bogeyman “trade deficit” will disappear, as long as we have an investment surplus. The logic is inescapable.

Therefore, you may as well get used to the idea. Lean back and enjoy it!


37 posted on 06/11/2018 11:17:43 AM PDT by Hawthorn
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To: Hawthorn

What convoluted poppy cock!


54 posted on 06/12/2018 5:30:59 AM PDT by central_va (I won't be reconstructed and I do not give a damn)
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