if we had honest money - this trade deficit would end in a couple of years.
plus savers would be rewarded and bankers punished
Music to me ears, and one reason anti-banking Jackson is a hero of mine.
The standard classical liberal line about trade deficits is that if, for example, a country A (US) buys say 700 billion on products from Country B (china) at some point Country B has to spend that money in Country A. But in the current case, Country B could, instead of spending the money, INVEST the money in financial instruments from Country A. Is that what explains the massive amount of US reserves held by China? If so, it seems to imply a failure large risk for China. How long can they continue to increase reserves? Forever?