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2005-06-29 Home Front: Economy

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Posted by Spavirt Pheng6042 2005-06-29 00:00|| || Front Page|| [1 views since 2007-05-07] Top

#1 In a word - Crap. There are multiple reasons why the USA can maintain a substantial trade deficit over extended periods and 'kindness' is not one of them. The most obvious is that capital generates a better return in the USA than alternate destinations.

Posted by phil_b 2005-06-29 01:07|| 2005-06-29 01:07|| Front Page Top

#2 I run a constant deficit with Publix. The only way I can cover it is by working. Which maybe can give a clue to how the US covers the trade deficit..... by creating wealth.

Posted by Shipman 2005-06-29 13:02|| 2005-06-29 13:02|| Front Page Top

#3 This is gonna sound odd to some folks, but one of the major problems facing the world is a glut of savings, capital is being formed at a rate much faster than it can be efficiently invested.

Posted by Shipman 2005-06-29 13:04|| 2005-06-29 13:04|| Front Page Top

#4 Ship's right, there is way too much liquidity (money looking for investments) out there and as I noted the other day risk has been discounted to zero. I read today at Bloomberg that German interest rates are lower than at any time since Bismark (was chancellor). Economic systems have a way of self-correcting which leads me to think we are going to see an unprecedented level of capital destruction.

Posted by phil_b 2005-06-29 21:49|| 2005-06-29 21:49|| Front Page Top

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