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To: arrogantsob

We are exporting raw materials and importing finished goods like a third world country. Hence HUGE trade deficits. It’s embarrassing.


138 posted on 10/26/2017 6:27:19 AM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: central_va

American labor is too expensive to make most of the piddly crap we import from China. We are not importing any finished products other than textiles.

Automobiles and other finished goods are often produced by foreign manufacturers which have plants here.

Once a product becomes cheap enough it is going to be produced elsewhere. It is an indisputable fact of capitalist life.

Our role in the world economy is to create and produce NEW products. The rest of the world then catches up.

Hopefully the emphasis of Trump on petroleum and coal will see a positive impact on the Balance of trade.

With floating exchange rates there is no such thing as a Balance of Payments deficit or surplus. Gold is not used to settle accounts anymore. As long as the rest of the world is willing to accept dollars it means it has confidence in the US economy. We’re trading dollars for products which is not harmful economically.


139 posted on 10/26/2017 10:02:09 AM PDT by arrogantsob (Check out "Chaos and Mayhem" at Amazon.com)
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