Replies

If I were advocating trade surpluses then I would have no problem being called a protectionist. Can you appreciate the difference between someone who advocates surpluses and someone like me who would like to see no deficits or surpluses? I'm not anti-trade, I just think we should be self-sufficient to some degree.

I sail out of the port of LA every weekend and I see very little going out besides scrap steel. It's hard to imagine this is the trade activity of an advanced nation.

Why are surplus and deficit the only choices. If I threw in a 3rd choice - balanced trade - would you still choose deficits?

I think I am informed on the benefits of trade. The benefits of trade deficits however, still elude me. Does this Ricardo -does-Broadway book explain the benefits of large and growing trade deficits? If memory serves, I don't think any of the classic free traders embraced or even imagined the scenario people on your side call free trade.

This is utterly fucking futile!!! Don't you understand that other countries in the aggregate simply do not consume as much as we - and our high living standards - do. The accounts DO balance. Whatever they're not buying in goods and services (simply because it wouldn't presumably benefit them to by them) above what we're purchasing from them, goes to the purchase of our assets. It just so happens that they prefer our debt...and this in turn drives down our domestic interest rates which fuels expansion on consumption. If the shoe was on the other foot, there would be benefits there, too. The bottom line is that in the aggregate, we're trading with one another because we're all benefiting somehow (in the aggregate). There's no coercion, it's all voluntary (at least on our end).

What is there such a fucking problem understanding this concept?

Why are surplus and deficit the only choices. If I threw in a 3rd choice - balanced trade - would you still choose deficits? ~ sixmil

So, let's recap: 1) You cannot make other countries buy your goods and services; especially if they have no use for them or there utility functions are not being satisfied by what they'd be spending. 2) Trade balance (or in-balances) are a misnomer. Trade is always balanced when the relevant account are weighed on the double entry accounting style balance sheet. 3) Are you interested in the book or not?