Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
But too big to fail has proven not to be true. Yeah, I throwing in all kinds of stuff that doesn't totally apply, but you get the gist of it.
I'm not comfortable with the whole, we are the largest economic power and nothing can be done that will majorly hurt our economy type of stuff.
__________________ ____________________________________________
My posts as a Mod will always be in red.
Be sure to review Terms of Service: TOS
And check this out: FAQ
Moderator: Relationships Forum / Hawaii Forum / Dogs / Pets / Current Events
What happens when China buys up the major highways, national parks, infrastructure, utility companies etc, by investing those dollars gained by selling us trinkets and Walmart garbage? You don’t see a national security threat in allowing hostile powers to use our massive trade deficit to their advantage, at our expense?
Many countries do invest heavily in the US, Asia has invested heavily in the Gulf Coast for future energy as an example. Do you know how much foreign direct investment (FDI) the US has receives yearly?
Quote:
Wouldn’t it be wiser, and more direct to have profitable trade arrangements where we are not being taken to the cleaners, and instead, WE use the profits WE receive to invest in us? Why would you want to sell America off at a Chinese auction, for gods sake ?
That's what taxes are used for, to invest in public infrastructure and in ourselves. We gave a huge tax cut to US corporations,you should ask them what they are investing in.
Quote:
Isolated economy? We created most of the technology that the rest of the world now enjoys, and wants to sell to us??? Who created the telephone industry .... the automotive industry .... the airline industry ... the computer industry?
We didn't create those things in a vacuum, that's just flag waving nonsense.
The fact is the dollar is the world’s reserve currency and I suggest you google the Triffen Dilemma. We are better off running trade deficits.
That's a good suggestion.
The Triffen Dilemma is per say was that the national interests may conflict with the global interest with respect to the currency. Hence "the dilemma".
As for the global interest the US must be wiling to run trade deficits in order to supply the demand for reserves. As I said, there is a reason why we have run trade deficits for 50 years straight.
No. Do you think we get some goods for free? Much of the trade deficit dollars come back to us in capital investments right here in the USA. I work for a Japanese subsidiary.
Google Milton Friedman trade deficits
There is a short 2:45 Friedman video well worth watching.
Ignore people here go to the greatest conservative economist of the 20th Century for info on tariffs and deficits.
Why isn't every country on the planet fighting to have higher trade deficits then?
They should all be fighting to have the biggest trade deficits.
They don’t have their currency as the world’s reserve currency for starters.classical liberalism is based on free men, free markets and free trade. The notion Liberalized trade is good for a nation goes back to at least the father of economics Adam Smith.
We are the world’s largest consumer nation. Countries produce stuff just for us. We don’t produce goods for the Central African Republic. The CAR only imports 75 bucks per person a year. A dream country for protectionists.
What happens when China buys up the major highways, national parks, infrastructure, utility companies etc, by investing those dollars gained by selling us trinkets and Walmart garbage? You don’t see a national security threat in allowing hostile powers to use our massive trade deficit to their advantage, at our expense?
This has nothing to do with a trade deficit and most of the stuff you listed are things that are not for sale. There are also laws regarding foreign ownership of American Corporations.
Quote:
Wouldn’t it be wiser, and more direct to have profitable trade arrangements where we are not being taken to the cleaners, and instead, WE use the profits WE receive to invest in us? Why would you want to sell America off at a Chinese auction, for gods sake ?
Trade is not zero sum gain. For instance a county could need to import something in order to export something else at a competitive price. (i.e. Aluminum and Aircraft, Steel and Trucks or farm equipment)
Quote:
Isolated economy? We created most of the technology that the rest of the world now enjoys, and wants to sell to us??? Who created the telephone industry .... the automotive industry .... the airline industry ... the computer industry?
While we did create the telephone, every country created it's own telephone industry. Mercedes Benz is one of the oldest car companies on Earth and they are just as important as Ford. Many countries created their own Airline industry(in fact the Germans were leaders in lighter than air travel). Both the U.S. and britain built computers during WWII and many countries have had computer industries.
1) the dollar is the world’s reserve currency. In order to get dollars nations must give us goods.
2) we are the largest consumer nation by far. Countries produce goods specifically for our market.
There are great benefits to both of these items. Consumers benefit from lower prices and more choices. Exports from overseas still require American jobs to ship domestically, warehouse and sell. Americans, yes, can get higher quality goods. The Japanese forced the Big Three to stop selling crap.
If you don’t like deficits on trade don’t buy foreign goods. Leave me alone.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
