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There are always recessions it's part of a natural economic cycle.
No such natural cycles exist, and they never have. You are merely tripping over the fact that economies can only expand, contract, or stay about the same. If you want a "natural" state for an economy, it would be slow steady expansion based on population and productivity growth. Deviations away from that norm are typically signs that something has gone wrong.
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Originally Posted by SWFL_Native
In some respects recessions are good for the longterm growth and health of the economy.
No, in the real world, there are no such respects either. You've been listening too much to the bozo economics of Ron Paul and the like.
They aren't "investing in the US", they are buying US debt so they can sell us more than they buy.
Cart before the horse would be a nice way to put it. Meanwhile, all purchases of Treasury securities are acts of investment. It doesn't matter who the investor is or how he came by the cash he proposes to forego.
I don't see any connection between buying US debt and selling us goods.
If they sell us more than they buy, they end up with an excess of US$, which they can then use to buy US debt or other US assets.
Buying US debt tends to keep the US$ value high, which naturally keeps the exchange rate favorable for more net exporting of goods to the US. It's been a win-win for oligarchs on both sides. It only sucks for US consumers who've experienced a massive loss of wealth since this started in the early 80s.
It doesn't matter who the investor is or how he came by the cash he proposes to forego.
It matters tremendously to the economic health and prosperity of the country. The only "investments" that makes us richer are the ones that ultimately increase productivity. That would be infrastructure, productive assets, research, education, etc.
It only sucks for US consumers who've experienced a massive loss of wealth since this started in the early 80s.
The dollar has gone through both strong and weak periods since 1980. Where is this being accounted for? Where is it noted that a strong dollar makes consumers wealthier when seeking goods and services with any significant international content? A strong dollar is widely considered to be of significant benefit to consumers and of a small net benefit overall.
It matters tremendously to the economic health and prosperity of the country. The only "investments" that makes us richer are the ones that ultimately increase productivity. That would be infrastructure, productive assets, research, education, etc.
Where do you think the proceeds of foreign direct investment in the US end up going?
The dollar has gone through both strong and weak periods since 1980.
The US$ exchange value hasn't been low enough to close the trade gap on its own. That much is obvious. We also changed policies to encourage a deficit instead of achieving an approximate balance in trade as we did in prior history.
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Where do you think the proceeds of foreign direct investment in the US end up going?
Mostly out of the country. When a foreign corporation buys a US company, where do the profits go?
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