Do you have any evidence of that? My point was that no matter which direction the trade deficit goes, the tariff free traders argue it is good news. Failing that they say it doesn't matter. Reminds me of how kids make rules - I win.
Let's be clear here, in economics there truly is no such thing as a free lunch because there's always an opportunity cost or alternative that has its own sets of pros & cons. If the board's protectionists are seemingly always discussing the cons of an economic activity (or outcome), who do you suppose is going to provide the balance (and education) to the discussion? That's why I used to engage you but now it's lost its fun for me I'd been reduced to being a broken record.
I, myself, have grown tired of the arguments and have stopped participating. I have my own preference on the trade issue and if I had to choose between deficit and surplus in the current account, I'd choose deficit. I'd choose deficit because it would mean, through an accounting identity, that our capital account would be in surplus and, since foreigners typically buy our debt instruments (relative to the proportions of equity securities and property assets they buy), they fund our economic expansion...that is until the cycle is broken and the trend does a 180.
Sixmil, I have found myself on the other side of many discussions with you and I don't think that you are informed enough about the benefits of free(er) trade. Please consider reading a very short book - done in a story-telling format - that will help for you to see (if only briefly) the other side of the argument. If you'd like, I'll offer the book for sale for $.50 on Amazon.com Marketplace. When I send you the book, if you choose to purchase it, I'll enclose five bucks for your efforts (and to offset the transaction costs & shipping that arise). You'll have to send me a private message through FR so that we can set up a time for me to offer it for sale because I want to know that it'll be you that "let the book go" to at that price and with five bucks inside.
The book's info can be found here. I look forward to hearing from you one way or the other. Make sure to check out the reader reviews to see if this even interests you.
BTW, in response to Toddsterpatriot's post. It may be that they've stopped buying our debt and we've been the ones slowing our buying from them. There are many possibilities that will clear themselves up for you if you were to read about them.
Any evidence that other countries are buying? Gosh, this is easy. From the article: U.S. exports, led by increased shipments of capital goods and food, feeds and beverages, hit a record $102.2 billion.
If U.S. exports are at a record high, foreign purchases of U.S. exports are at a record high.
My point was that no matter which direction the trade deficit goes, the tariff free traders argue it is good news.
You misunderstand, I don't think a trade deficit is a bad thing. The foreign sellers get dollars which must be redeemed at some point. When they buy our goods that reduces our trade deficit and provides jobs and profits for our people and companies. That's a good thing. When they buy our debt that reduces our interest rates and that's a good thing. When they buy our equities they provide capital which allows our businesses to expand production and increase hiring and that's a good thing.
I just don't see the downside in any of these activities. Maybe you can find one for me?