[ex-snook]

Let’s stop buying their stuff now and we can restore employment.

[JasonC]

Um, his point was we are - the trade deficit is half what it was before the recession, and as a result foreigners are earning US dollars at only half the rate they were 2 years ago. Therefore they cannot finance more than about a third or a quarter of our present budget deficits, maximum.

US savers have to fund those budget deficits, or they have to be reduced, or both. The game of the US government borrowing from abroad to support US domestic spending is over.

Which to my mind is a good thing, because it wasn't sustainable in the first place...

[PeterPrinciple]

Let’s stop buying their stuff now and we can restore employment.

---

We got their crappy stuff and they got our crappy money, who got the better deal?

[GeronL]

Obviously this means we must make more things here but the jobs are going to pay crap. But at least they would be jobs.

[Forward the Light Brigade]

Now that we have spent all of our money—lets give away China’s Money too! Give them worthless pieces on paper we can repudiate in the future. China will have no choice but to loan us the money we will never pay back? What will they do? Nuke us? Have a war? Heck we are their biggest buyer. We have them by their chop sticks. (sic)

[Westlander]

I’ve never been in a Walcrap.

[Chickensoup]

Let’s stop buying their stuff now and we can restore employment.

That is a fallacy. We do not have the equipmwent to manufacture many goods, we sold it overseas. We no longer have the skilled tool and die makers or the equipment in any quantity to develop the machinery to manufacture goods. We have had our seed corn sold out from under us. There is no going back.