Users who Dugg This
E. David Ferriman
6 Followers
Edward Fauntleroy
121 Followers
murrdpirateFeb 16, 2010
They are two different things, but they are closely tied to each other. When we run a trade deficit and foreigners accumulate excess dollars, they tend to buy treasuries. That's why we have both the largest trade deficit and largest debt with China.Generally, a trade deficit increases debt (or decreases surplus). The only way it doesn't is if foreigners keep all their excess dollars in cash or invest it all in US companies.
EdwardFauntleroyJan 6, 2011
Well, investing in U.S. companies is problematic as well, as you have the nations we compete against having a stake in our companies. Overall, trade imbalances lead to no good end for all parties involved.
Closed AccountFeb 16, 2010
Apart from the defence sectory, when was the last time the US great innovation that brought in billions of dollars for the economy?
rk5000Feb 16, 2010
I thought it was all that maple syrup from Canada.
korvan504521Feb 17, 2010
uh, what? It just means you're devaluing your own currency.
k1n6Feb 17, 2010
The solution is obvious, just keep spending and spending to boost the economy.Spend spend spend. that will save us money.
EdwardFauntleroyJan 6, 2011
It's funny how that message is just forced down everyone's throats. However, by spending more on imported goods, we are actually harming the economy. If we weren't living in this mess it would almost be hilarious.
bipolarruledoutFeb 17, 2010
The majority of jobs are created by small businesses.
jordantw90Feb 17, 2010
High inflation has plenty to do with trade deficits. Inflation/borrowing allow us to spend beyond our means without any reguard for actual PRODUCTION.Yeah, we do need to purge the rot, so to speak. Massive depression is inevitable and the longer we continue to keep the house of cards from falling down the worse it will be when the bottom card finally topples.