If It Feels Good, Then Do It -- Economic Commentary by The Mogambo Guru

The Daily Reckoning ^ | 7/23/03 | Richard Daughty

[arete]

Because, ultimately, you can only import as much as you export. It's pretty simple

Yes it is simple which makes me wonder why you can't understand that the "money they send us" back, we owe them -- with interest. Can you see why this is a problem? Repeat 10 times -- "There is no free lunch".

Richard W.

[Beck_isright]

Shhhh, you'll upset the utopia being created.

[cc2k]

First, that is not the people's debt...(he assigns at least 2,000 to every person)...that is the amount of money the government OWES to the people. I like having the government in debt to us.

Actually, it's money that current and future taxpayers ultimately owe to government bond holders. Much of that debt is held by people who are not citizens, and do not live in this country. Actually, the Chinese (both Chinese businesses and fronts for the Chinese government) now hold a whole lot of United States government bonds. The Japanese also hold a significant amount of US government debt, as do many Europeans.

[arete]

Shhhh, you'll upset the utopia being created.

It is amazing just how effective government and Wall Street have been at brainwashing so many even as they pick their pockets and leave them nothing but paper IOU's.

Richard W.

[jammer]

Whatever you say. You and I have no common basis for discussion.

[Norse]

>money they send us" back, we owe them -- with interest

Well no kidding. They wouldn't send us money if they weren't going to get anything. Paying them interest for borrowing their money is exactly the same concept as exchanging goods and services with them in exchange for their money. In fact, it may be highly advantageous for us to have a portion of our incoming money coming from investments into this country as the average profit margin for all NASDAQ companies is only 3.1% as opposed to sending them goods and services which cost us for the property, plant, equipment, raw materials, manpower, and administrative expenses.

I never said there is any free lunch, but there isn't free lunch for foriengers, either. It's a two way street.

[Norse]

fine by me

[Norse]

Well I know what you're saying, but for this discussion the two entities...taxpayers...and government...were separated for a comparison of multiple scenarios