The chief of these seems to be "trade deficit".
As a poster recently reminded me, I don't have a "degree and have not attended university". So I just pass this on as an observation, which drives economists nuts. I don't know why. I think it is because they all seem to exist and none of them earn a living. They all teach! go figure.
Anyway. How can I say that 'trade deficit' is not important?
I just compare current Germany and France to the US. If trade deficit mattered, they would both be doing wonderfully, and the US would be in trouble. Both Germany and France have hefty "trade surplus" and are suffering for it. It seems.
The opposite seems to be the case, ergo, trade deficit is for class rooms and not much else.
I was watching the head of the German national bank on CSPAN the other night. The question to him was "how can we ignite a will in the people to compete better in the world market"?
He talked for an hour without once saying "Simple. Ignite the power of the people. Support capitalism by lowering taxes and lessening regulation."
Go figure. Simple observations can lead to immense truths. When a people get stuck in a "utopian dream" that isn't going too good, they must learn to see the dream as a nightmare and just wake up, shake off the dust and try something else.
Originally posted by StarValleyWyTrade deficit means a country consumes more than it produces. And this is achieved by borrowing money or selling assets.
The chief of these seems to be "trade deficit".
As a poster recently reminded me, I don't have a "degree and have not attended university". So I just pass this on as an observation, which drives economists nuts. I don't know why. I think it is because they all seem to exist and none of them earn a living. They all teach! go figure.
Anyway. H ...[text shortened]... arn to see the dream as a nightmare and just wake up, shake off the dust and try something else.
And all will be fine until the assets start running out or the borrowers start to worry about getting paid back. Then it gets less pleasant.
If your neighbours are maxing our their credit cards or selling off the family silver, they may well appear to be doing better then you are.